ISM: U.S. Services Sector Growth Slows in April
The Institute for Supply Management said its Non-Manufacturing Index (NMI) registered 53.5% in April, 2.5 percentage points lower than the 56% registered in March. This indicates continued growth this month, but at a slower rate in the non-manufacturing sector, the ISM said.
Economic activity in the non-manufacturing sector grew in April for the 28th consecutive month, according to the ISM. A reading above 50% indicates the non-manufacturing sector economy is generally expanding; below 50% indicates the non-manufacturing sector is generally contracting.
According to the NMI, 15 non-manufacturing industries reported growth in April. Respondents’ comments affirm the slowing rate of growth. In addition, they remain concerned about rising fuel costs and the impact on shipping, transportation and petroleum-based product costs.
The 15 non-manufacturing industries reporting growth in April – listed in order – are: Retail Trade; Information; Construction; Management of Companies & Support Services; Arts, Entertainment & Recreation; Educational Services; Finance & Insurance; Accommodation & Food Services; Wholesale Trade; Real Estate, Rental & Leasing; Transportation & Warehousing; Other Services; Public Administration; Professional, Scientific & Technical Services; and Health Care & Social Assistance.
The three industries reporting contraction in April are: Agriculture, Forestry, Fishing & Hunting; Utilities; and Mining.
To read the full ISM report click here.