Widget Image
Follow PPD Social Media
Thursday, December 5, 2024
HomeNewsEconomyISM Services Sector Index Unexpectedly Up From Month Prior

ISM Services Sector Index Unexpectedly Up From Month Prior

service-sector
service-sector

Service sector workers employed in a typical cubicle position. (Photo: Reuters)Service 

The pace of growth in the U.S. services sector rose to a 5-month high in April, fueled by increases in business activity that offset a sharp decline in exports. The Institute for Supply Management said its services sector index rose to 57.8 last month, up from 56.5 in March.

Economists polled by Reuters were expecting a consensus reading of 56.2. A reading above 50 indicates expansion in the sector, while below indicates contraction. April’s ISM index reading was the highest it’s been since November.

The ISM’s index of business activity rose from 57.5 in March to 61.6 in April, which was also the highest reading since November. Analysts polled by Reuters forecast a reading of 57.9. The employment index was essentially unchanged, moving to 56.7 in April, up barely from 56.6 in March.

However, the exports index plummeted to 48.5, down from 59 the month prior and to its weakest reading since February 2014. A Commerce Department report released Tuesday also found the U.S. trade deficit ballooned on weak exports and increased imports. Despite the upbeat services sector report, overall, data suggest the economy contracted.

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial