U.S. services sector activity expanded only modestly in April, according to the Institute for Supply Management (ISM). The business sentiment index fell to its lowest level in nearly three years.
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The input price index remained near the lowest level since 2020.
The Business Conditions Index fell 3.4 points to 52. Lowest level since May 2020, although still suggesting increased activity. It was the third month in a row of declines, suggesting that demand for services is softening.
Upper: non-manufacturing general business conditions index, lower: business conditions index
Source: ISM
Combined with the April ISM Manufacturing Composite Index, which showed activity contracting for the sixth straight month, the non-manufacturing index shows that the economy is gaining momentum amid rising interest rates and persistently high inflation. It highlights that there is no
U.S. ISM Manufacturing Index Shrunk Activity for 6th Consecutive Month, Signaling Prolonged Stagnation
However, the nonmanufacturing index of new orders jumped nearly four points to 56.1, suggesting demand continues to grow, albeit moderately.
In April, 14 industries, including entertainment/recreation, real estate, and lodging/food services, reported expansion. Three industries shrunk.
“The majority of respondents are generally positive about business conditions, but some are wary of headwinds related to inflation and the economic slowdown,” said Anthony Nieves, chairman of the ISM non-manufacturing survey committee, in a statement. pointed out.
The purchase price index rose slightly from the previous month to 59.6, but remained near the lowest level since July 2008. It suggested that inflationary pressures were easing.
The employment index fell to 50.8, indicating a further slowdown in the pace of hiring in the service sector.
See table for detailed statistics.
Original title:US Service Industry Expands at a Modest Pace as Activity Cools(excerpt)
(Add and update stat details)
2023-05-03 14:05:38
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