The activity in the United States' service sector improved in April, with the Services Purchasing Managers' Index (PMI) going from March's 50.8% to 51.6% while remaining in the expansion territory, the Institute for Supply Management (ISM) said in its report published on Monday.
The New Orders Index rose by 1.9 percentage points compared to the previous month to 52.3%. On the other hand, the Inventory Sentiment Index declined by 0.5 percentage points to 56.1%, and the Business Activity Index by 2.2 percentage points to 53.7%. Meanwhile, the Employment Index stayed in contraction territory for the second month in a row despite adding 2.8 percentage points to 49%.
"April's change in indexes was a reversal of March's direction, with increases in three (New Orders, Employment and Supplier Deliveries) of the four subindexes that directly factor into the Services PMI ... Regarding tariffs, respondents cited actual pricing impacts as concerns, more so than uncertainty and future pressures. Respondents continue to mention federal agency budget cuts as a drag on business, but overall, results are improving," ISM Services Business Survey Committee Chair Steve Miller said.
