The service sector in the United States experienced an upturn in business activity in April, with the Services PMI Business Activity Index at 55.6, S&P Global said in a release on Wednesday. The index decreased compared to March, when it stood at 58, but was higher than the preliminary estimate of 54.7. Businesses reported an increase in output, linked to the loosening of COVID-19 restrictions.
Meanwhile, the Composite PMI Output Index was at 56.0 in April, down from 57.7 in March. "Inflationary pressures intensified further in April. Input prices and output charges increased at the sharpest rates on record. Material and labor shortages, alongside greater transportation costs drove the rise in prices. Although firms registered a further rise in employment, labor shortages continued to be highlighted. As a result, backlogs of work grew at a sharp pace," the report stated.