PMI^® at 51.6%

Economic activity in the services sector expanded for the 10th consecutive month in April, say the nation’s purchasing and supply executives in the latest Services ISM^® Report On Business^®. 

The Services PMI^® registered 51.6 percent, indicating expansion for the 56th time in 59 months since recovery from the coronavirus pandemic-induced recession began in June 2020. The Business Activity Index registered 53.7 percent in April, 2.2 percentage points lower than the 55.9 percent recorded in March. This is the index’s 59th consecutive month of expansion. The New Orders Index recorded a reading of 52.3 percent in April, 1.9 percentage points higher than the March figure of 50.4 percent. The Employment Index stayed in contraction territory for the second month in a row; the reading of 49 percent is a 2.8-percentage point increase compared to the 46.2 percent recorded in March. The Prices Index registered 65.1 percent in April, a 4.2-percentage point increase from March’s reading of 60.9 percent and a fifth consecutive reading above 60 percent. 

The 11 services industries reporting growth in April — listed in order — are: Accommodation & Food Services; Wholesale Trade; Mining; Real Estate, Rental & Leasing; Retail Trade; Arts, Entertainment & Recreation; Health Care & Social Assistance; Transportation & Warehousing; Information; Educational Services; and Utilities.

In April, the Services PMI^® registered 51.6 percent, a 0.8-percentage point increase compared to the March reading of 50.8 percent. A reading above 50 percent indicates the services sector economy is generally expanding; below 50 percent indicates it is generally contracting. A Services PMI® above 48.6 percent, over time, generally indicates an expansion of the overall economy. Therefore, the April Services PMI^® indicates the overall economy is expanding for the 59th straight month.

Commodities Reported

Commodities Up in Price: Aluminum Products (3); Beef; Computers and Peripherals; Copper Based Products (2); Eggs; Electrical Components; Fasteners; Food and Beverages; Fuel; Heating, Ventilation and Air Conditioning (HVAC) Equipment (2); Labor (53); Maintenance Contracts; Metals; Network Equipment; Oil Based Products; Paper; Propane; Steel (2); and Steel Products (4).

Commodities Down in Price: Cheese; Diesel Fuel (2); and Gasoline (2). 

Commodities in Short Supply: Eggs (3); Electrical Components; Repair Parts and Service; and Steel Products.

Note: To view the full report, visit the ISM^® Report On Business^® website at ismrob.org. The number of consecutive months the commodity is listed is indicated after each item.