Services PMI^® at 53.6%

Economic activity in the services sector continued to expand in April, say the nation’s purchasing and supply executives in the latest ISM^® Services PMI^® Report. 

The Services PMI^® registered 53.6 percent, the 22nd consecutive month in expansion territory. The Business Activity Index remained in expansion territory in April, increasing 2 percentage points to 55.9 percent from March’s reading of 53.9 percent. The New Orders Index registered 53.5 percent, 7.1 percentage points below March’s figure of 60.6 percent and 0.4 percentage point below its 12-month average reading of 53.9 percent. The Employment Index contracted for the second month in a row with a reading of 48 percent, a 2.8-percentage point increase from the 45.2 percent recorded in March. The Prices Index held steady at 70.7 percent in April, the same as March’s figure and repeating its highest reading since October 2022 (70.7 percent). The index has exceeded 60 percent for 17 straight months, increasing its 12-month average from 67.2 percent to 67.7 percent. 

The 14 services industries reporting growth in April — listed in order — are: Other Services; Wholesale Trade; Management of Companies & Support Services; Mining; Information; Construction; Accommodation & Food Services; Professional, Scientific & Technical Services; Utilities; Finance & Insurance; Transportation & Warehousing; Educational Services; Health Care & Social Assistance; and Public Administration. 

In April, the Services PMI^® registered 53.6 percent, 1.1 percentage points above its 12-month moving average of 52.5 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 48.1 percent, over time, generally indicates an expansion of the overall economy. Therefore, the April Services PMI^® indicates the overall economy is expanding for the 71st straight month.

Commodities Reported

Commodities Up in Price: Aluminum (2); Beef (2); Copper (5); Diesel (2); Freight; Fuel (3); Gasoline (3); Labor (9); Lumber (4); Memory Products (4); Nickel Alloys; Plastics; Software — Licensing (3); Software — Maintenance/Support; Steel Products; Transportation (2); and Wire and Cable.

Commodities Down in Price: None. 

Commodities in Short Supply: Electronic Components (3); Labor — Construction; Memory Components (4); and Oil and Petroleum Products.

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