Business activity index vs 55.9 prior Employment vs 48.0 prior New orders vs 53.5 prior Prices paid vs 70.7 prior Supplier deliveries vs 56.8 prior Inventories vs 53.1 prior Backlog of orders vs 53.0 prior New export orders vs 52.1 prior Imports vs 54.7 prior Inventory sentiment…
55.1 prior Before today’s report, the ISM services report showed the U.S. services sector remained in expansion through April, though the details were more mixed than the headline suggested. The Services PMI slipped to 53.6 from 54.0 in March, marking the 22nd straight month above the 50 threshold
Business activity improved to 55.9, suggesting current demand remained resilient, but new orders fell sharply to 53.5 from 60.6, indicating that March’s surge may have reflected some front-loading ahead of expected price increases. Employment remained the weak spot, contracting for a second straight month at 48.0, even with some improvement from March’s 45.2 reading. The inflation signal was harder to dismiss.
The prices index held at 70.7, matching the highest reading since October 2022 and staying above 60 for a 17th consecutive month. ISM respondents continued to cite higher oil, fuel, freight, labor and commodity costs, with no commodities listed as down in price. Supplier deliveries also slowed further, while backlogs stayed in expansion for a third month.