The ISM Services Index registered 62.7% in April; 1.0 percentage points lower than the March reading of 63.7%. This reading represents the eleventh straight month of growth for the services sector, which has expanded for all but two of the last 135 months.
Seventeen non-manufacturing industries reported growth. Survey respondents noted “pent-up demand is continuing. Production-capacity constraints, material shortages, weather and challenges in logistics and human resources continue to affect deliveries, which has resulted in a reduction of inventories.”
The Business Activity Index registered 62.7% in April, an decrease of 6.7 percentage points from the March reading of 69.4%. This represents growth for the eleventh consecutive month.
Service sector employment grew in April for the fourth month in a row and registered 58.8% in April, up from the March reading of 57.2%. Eleven industries reported growth in employment for the month.
The New Orders Index was 63.2%, a decrease of 4.0 percentage points from the March reading of 67.2%. Comments from respondents include: “Customers are starting to spend capital on new projects” and “Increased client demand (and) reopening of business locations.”
Supplier deliveries remained slow, as the index registered 66.1%, which is 5.1 percentage points higher than the 61% reported in March. A reading above 50% indicates slower deliveries.
Read the ISM release.