US Services Sector Growth in April

The United States' service sector experienced a notable improvement in April, as indicated by the Services Purchasing Managers' Index (PMI) rising from 50.8% in March to 51.6%, firmly staying within the expansion territory, according to the latest report from the Institute for Supply Management (ISM) released on Monday.

Key Indexes Reflect Mixed Results

The New Orders Index saw a significant increase of 1.9 percentage points from the previous month, reaching 52.3%. Conversely, the Inventory Sentiment Index slightly declined by 0.5 percentage points to 56.1%, and the Business Activity Index dropped by 2.2 percentage points to 53.7%. The Employment Index, although it improved by 2.8 percentage points to 49%, remained in contraction territory for the second consecutive month.

Insights from ISM

"April's index changes marked a reversal from March's trends, with three of the four subindexes that directly influence the Services PMI showing growth. Concerns over tariffs were more focused on actual pricing impacts rather than future uncertainties. Despite mentions of federal agency budget cuts affecting business, the overall outlook is improving," commented Steve Miller, Chair of the ISM Services Business Survey Committee.