Economic activity in the U.S. services sector expanded in April for the 10th consecutive month, according to the Institute for Supply Management’s latest Services ISM Report On Business, released Monday.
The Services Purchasing Managers Index (PMI) rose to 51.6%, up from 50.8% in March, signaling continued, though modest, growth. A reading above 50% indicates expansion.
“The April reading reflects a return to positive momentum in key areas like new orders and supplier deliveries,” said Steve Miller, chair of ISM’s Services Business Survey Committee. “However, employment remained in contraction territory for the second straight month.”
The Business Activity Index dipped to 53.7% from 55.9% in March, while the New Orders Index rose to 52.3%. The Employment Index increased slightly to 49%, still indicating job losses in the sector.
Prices paid by services organizations continued to climb, with the Prices Index jumping to 65.1%, its highest level since January 2023. Inventories also grew for the third month in a row, rising to 53.4%.
Eleven of 18 services industries reported growth in April, led by accommodation and food services, wholesale trade, and mining. Sectors such as agriculture, finance, and public administration reported contraction.
Despite concerns about tariffs and federal budget cuts cited by survey respondents, the overall services economy has now grown in 55 of the past 58 months.
The next ISM Services Report, covering May data, will be released June 4.
