ISM Services Index Rises as New Orders Increase [April 2022]

Activity in services in the United States rose as expected in April, for the fourth month in a row, thanks in particular to an increase in new orders, according to the survey by the professional federation ISM published on Wednesday.

The index measuring such activity climbed 0.7 points in April from March to 51.9%, in line with analysts’ expectations, according to Briefing.com’s consensus.

A figure above 50% signals that activity is growing, while a figure below indicates, on the contrary, a contraction.

“There has been a slight acceleration in the growth rate of the service sector, mainly due to the increase in new orders and the continuous improvements in supply capacity and logistics”, underlined Anthony Nieves, the president of the investigation, quoted in the press release.

Furthermore, he added, “the majority of respondents are overwhelmingly positive about economic conditions; however, some respondents are wary of the potential difficulties associated with inflation and the economic downturn”.

Inflation has certainly slowed in the United States in recent months, but it still remains far too high in the eyes of the American central bank (Fed), which has been trying for a year to slow down economic activity, with a view to easing the price pressure.

It could announce Wednesday afternoon, at the end of its monetary policy meeting, a further rise in its rates, which makes credit more expensive for individuals and businesses.

The CPI inflation index, which refers to and on which pensions are indexed, showed a slowdown in March, to 5% over one year, against 6% in February.