The ISM services index showed continued expansion of the U.S. services sector in April, but missed expectations, coming in at 55.4 vs. 56.1 expected. The index was flat with March. The most notable data point is probably the weak reading on employment.
“The NMI (Non-Manufacturing Index) registered 55.4 per cent in April, the same percentage as registered in March, and indicating growth in the non-manufacturing sector. The Non-Manufacturing Business Activity Index increased 0.3 percentage point to 60.3 per cent, reflecting growth for the fifth consecutive month. The New Orders Index decreased 4.1 percentage points to 58.2 per cent, and the Employment Index decreased 0.3 percentage point to 49.5 per cent. The Prices Index increased 1.8 percentage points to 64.7 per cent in April, indicating an increase in prices paid from March. According to the NMI, 14 non-manufacturing industries reported growth in April. Respondents’ comments are mostly positive about current business conditions; however, they vary by industry and company.”