Services PMI™ at 62.7%
In April, the Services PMI® registered 62.7 percent, a 1-percentage point decrease compared to the March figure of 63.7 percent. This reading indicates the services sector grew for the 11th consecutive month after two months of contraction and 122 months of growth before that. A reading above 50 percent indicates the services sector economy is generally expanding; below 50 percent indicates the services sector is generally contracting.
Economic activity in the services sector grew in April for the 11th month in a row, say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business®.
The Services PMI® registered 62.7 percent. The Prices Index figure of 76.8 percent is 2.8 percentage points higher than the March reading of 74 percent, indicating that prices increased in April, and at a faster rate. The composite index indicated growth for the 11th consecutive month after a two-month contraction in April and May 2020. There was slowing growth in the services sector in April; however, the rate of expansion is still strong. Respondents’ comments indicate that the pent-up demand is continuing. Production-capacity constraints, material shortages, weather and challenges in logistics and human resources continue to affect deliveries, which has resulted in a reduction of inventories.
The 17 services industries reporting growth in April — listed in order — are: Arts, Entertainment & Recreation; Wholesale Trade; Management of Companies & Support Services; Construction; Real Estate, Rental & Leasing; Utilities; Public Administration; Transportation & Warehousing; Retail Trade; Other ServicesΧ; Finance & Insurance; Mining; Health Care & Social Assistance; Professional, Scientific & Technical Services; Educational Services; Information; and Accommodation & Food Services. The only industry reporting a decrease in April is Agriculture, Forestry, Fishing & Hunting.