The ISM Services Index registered 57.1% in March; 1.2 percentage points lower than the March reading of 58.3%. This reading represents the 23rd straight month of growth for the services sector, which has expanded for all but two of the last 147 months.
Seventeen non-manufacturing industries reported growth in April. Survey respondents noted “Pricing pressures and product availability issues continue to be extremely problematic. Inflation, supply chain issues and access to qualified workers continue to be issues. There are still lingering effects from the pandemic, although those seem to be subsiding. The future impacts of the war in Ukraine are unclear.”
The Business Activity Index registered 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.
Service sector employment contracted in April, and registered 49.5%, 4.5 percentage points lower than March’s reading of 54.0%. Ten industries reported growth in employment for the month.
The New Orders Index was 5.46%, down 5.5% from the prior month’s reading of 60.1%. Comments from respondents include: “New customers added, which has led to greater sales orders and business activity” and “Market demand increasing.”
The supplier deliveries index registered 65.1% in April, up 1.7% from the prior month. A reading above 50% indicates slower deliveries.
Read the ISM release.