ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Economy

Services sector expanded in April

May 5, 2025
Reading Time: 2 mins read
Service sector expanded in March

The ISM Services Index increased to 51.6%, 0.8 percentage points (pp) higher than the March figure of 50.8%

“Eleven industries reported growth in April, a drop of three from the 14 industries reported in January and February. The Services PMI® has expanded in 55 of the last 58 months dating back to June 2020. The April reading of 51.6% is 1 pp below the 12-month average reading of 52.6%.” “April’s change in indexes was a reversal of March’s direction, with increases in three (New Orders, Employment and Supplier Deliveries) of the four subindexes that directly factor into the Services PMI®. Of those four, only the Business Activity Index had a lower reading compared to March. Employment continues to be the only one of these subindexes in contraction territory, with two straight months of contraction. From December through February, all four subindexes were in expansion. Regarding tariffs, respondents cited actual pricing impacts as concerns, more so than uncertainty and future pressures,” said Steve Miller, CPSM, CSCP, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee.

Business Activity Index registered 53.7% in April, 2.2 pp lower than the 55.9% recorded in March, a 59th straight month of expansion. The Business Activity Index has been in expansion territory since its coronavirus pandemic lows. Comments from respondents include: “We are seeing a more conservative approach both domestically and internationally as a result of the current U.S. policies” and “People rushing to purchase vehicles in advance of the tariffs.” Respondents commented: ““The tariff uncertainty is causing a lot of consumption of human capital. We are starting to see some tariff charges, some are significant given the price of the highly specialized units that were ordered over two years ago. Based on our spend over the last couple of years, we will have to adjust our capital and operations and maintenance plans.” (Utilities).

The Inventories Index remained in expansion territory for the third month in a row. The reading of 53.4% is a 3.1 pp increase compared to the 50.3% reported in March. Of the total respondents in April, 47% indicated they do not have inventories or do not measure them. Comments from respondents include: “Purchased some products in advance of tariffs” and “Increased sales volumes show the need to increase inventory levels.” Respondents commented: ““Tariffs are negatively impacting small business customers. Many small business customers source their products from China. They cannot afford to compete in the marketplace sourcing from other countries. We could not move products fast enough to beat the tariff starting dates.” (Agriculture, Forestry, Fishing & Hunting

The Inventory Sentiment Index grew for the 24th consecutive month in April. The index registered 56.1%, a decrease of 0.5 pp from March’s figure of 56.6%. This reading indicates that respondents feel their inventories are too high when correlated to business requirements.

Read the ISM release.

Tags: ISM Services
ShareTweetPin

Related Posts

Treasury Department launches cybersecurity initiative for financial services

Bank survey finds widespread cybersecurity concerns among small business owners

Compliance and Risk
August 17, 2026

Eight-seven percent of small business owners believe a cyberattack could have severe financial consequences, with 84% believing it could damage their customer relationships.

Consumer Sentiment declined in April

Preliminary: Consumer sentiment fell in August

Economy
August 14, 2026

The University of Michigan Consumer Sentiment Index decreased 7.6% in August compared to the month prior, landing at 51, according to preliminary results for the month.

Bill would strengthen criminal penalties for ATM robberies

State attorneys general express support for ATM crime bill

Compliance and Risk
August 14, 2026

Fifteen state attorneys general urged Congress to pass legislation ensuring that robberies of off-site ATMs carry the same legal consequences as bank robberies. ABA also supports the bill.

ABA urges ‘same risk, same regulation’ for digital assets

ABA urges federal regulation of AI, level playing field for financial services

Compliance and Risk
August 14, 2026

Congress should establish a nationally harmonized, risk-based framework for regulating artificial intelligence in the financial services sector, which would preempt state laws while assuring strong consumer protection and cybersecurity outcomes, ABA told House Financial Services Committee members.

ABA: Proposed quality control rule for AVMs would overburden banks

ABA DataBank: Consumers tap home equity as housing values rise

Economy
August 14, 2026

Total home equity lines of credit (HELOC) reached $446 billion in Q1 2026, up 35.3% since hitting a trough in Q1 2022.

CFPB claims ‘complex’ pricing drives up cost of financial products

CFPB ends publication of consumer complaint narratives

Compliance and Risk
August 14, 2026

The CFPB will cease publication of unverified complaint narratives and visualizations, arguing the utility of publicizing narratives is minimal “while often causing confusion and providing misleading data.”

NEWSBYTES

Bank survey finds widespread cybersecurity concerns among small business owners

August 17, 2026

Preliminary: Consumer sentiment fell in August

August 14, 2026

State attorneys general express support for ATM crime bill

August 14, 2026

SPONSORED CONTENT

Beyond Surveillance: Rethinking Security for Modern Financial Institutions

Beyond Surveillance: Rethinking Security for Modern Financial Institutions

August 12, 2026
Relationship Banking at Scale: Why Banks Need The Digital Sales & Service Platform

Relationship Banking at Scale: Why Banks Need The Digital Sales & Service Platform

August 1, 2026
Why Your Systems Keep Slowing Down — and What to Do About It

Examiners Are Now Looking at Your Non-Core Systems

June 11, 2026
Your Floorplan Audit and Your Credit Decision Are Weeks Apart. That Gap Has a Price.

Your Floorplan Audit and Your Credit Decision Are Weeks Apart. That Gap Has a Price.

June 1, 2026

PODCASTS

Podcast: Banking the brave new world of college athletics

August 4, 2026

Podcast: Tactics for meaningful strategic planning

July 28, 2026

Podcast: Why it might be time to revisit a key FDIC ratio

July 23, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.