Service sector

ISM: Tertiary contracts in April

The ISM services index recorded 57.1% in March; 1.2 percentage points lower than the March reading of 58.3%. The reading represents the 23rd consecutive month of growth for the services sector, which has expanded for all but two of the past 147 months.

Seventeen non-manufacturing industries recorded growth in April. Survey respondents noted that “pricing pressures and product availability issues continue to be extremely problematic. Inflation, supply chain issues and access to skilled workers continue to be issues. There are still lingering effects from the pandemic, although these appear to be easing. The future impacts of the war in Ukraine are unclear.

The business activity index recorded 59.1% in April, an increase of 3.6 percentage points from the March reading of 55.5%. This represents growth for the twenty-third consecutive month.

Employment in the services sector contracted in April and recorded 49.5%, 4.5 percentage points lower than March’s reading of 54.0%. Ten industries reported employment growth for the month.

The new orders index was 5.46%, down 5.5% from the previous month’s reading of 60.1%. Comments from respondents include: “New customers have been added resulting in increased orders and business activity” and “Market demand is increasing”.

The supplier shipments index recorded 65.1% in April, up 1.7% from the previous month. A reading above 50% indicates slower deliveries.

Read the ISM version.