The ISM Services Index registered 51.9%, 0.7 percentage points higher than the March reading of 51.2%. The composite index indicated growth in April for the fourth consecutive month after a reading of 49.2% in December, the first contraction since May 2020 (45.4%).

“Fourteen industries reported growth in April. The Services PMI®, being above 50 percent for a fourth month after a single month of contraction and a prior 30-month period of expansion, continues to indicate sustained growth for the sector. The composite index has indicated expansion during all but three of the previous 159 months.”

The Business Activity Index registered 52.0%, a decrease of 3.4 percentage points compared to the reading of 55.4% in March.

The employment index registered 50.8%, 0.5 percentage point more than the 51.3% in March. Respondent comments include: “We continue to hire to increase our staffing levels” and “Attrition without replacements.”

The new orders index registered 56.1%, an increase of 3.9 percentage points from March’s reading of 52.2%. The index indicated expansion for the fourth consecutive month after contracting in December, ending a streak of 30 consecutive months of growth. Respondent comments include: “Exceeded Demand Forecasts” and “New Customer Service Requests.”

The Supplier Deliveries Index registered 48.6%, 2.8 percentage points more than the 45.8% registered in March. A reading above 50% indicates slower deliveries, while a reading below 50% indicates faster deliveries. The reading for April indicates that vendor deliveries are faster, but at a slower pace compared to the previous month. Respondent comments include: “Supply chain capacity continues to increase” and “Suppliers are catching up as demand has plateaued and raw material shortages are improving.”

Read the ISM release.

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