Service Sector Expansion Continues

Economic activity in the services sector continued to expand in April.

The Services PMI eased 0.4 percentage point to 53.6% compared to March’s figure of 54%, Steve Miller, chair of the Institute for Supply Management (ISM) Services Business Survey Committee, said

The Business Activity Index remained in expansion territory in April, increasing 2 percentage points to 55.9% from March’s reading of 53.9% . The New Orders Index registered 53.5%, 7.1 percentage points below March’s figure of 60.6 percent and 0.4 percentage point below its 12-month average reading of 53.9 percent. The Employment Index contracted for the second month in a row with a reading of 48 percent, a 2.8-percentage point increase from the 45.2 percent recorded in March, says Miller.

“The Prices Index held steady at 70.7% in April, the same as March’s figure and repeating its highest reading since October 2022 (70.7%). The index has exceeded 60% for 17 straight months, increasing its 12-month average from 67.2% to 67.7%.

"Diesel, gasoline, oil and related price increases were the most frequently mentioned commodities up in price in April," he said.