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2w ago

US Services Sector Rebounds in April with Rising Demand and Persistent Cost Pressures

The ISM services PMI climbed to 51.6, signaling renewed growth, though inflationary pressures and employment contraction remain challenges.

A factory worker works on an aircraft part, as the robot arm of an automated five-axis cell operates autonomously nearby, at Abipa Canada, in Boisbriand, Quebec, Canada May 10, 2023. REUTERS/Evan Buhler/File photo
An employee works inside a Nucor steel factory in Blytheville, Arkansas, U.S., March 28, 2025. REUTERS/Karen Pulfer Focht/File photo
Shoppers walk out of a luxury store at Tsim Sha Tsui district in Hong Kong, China February 15, 2023. REUTERS/Lam Yik/File Photo
General view of the city centre of Dublin, Ireland October 9, 2024. REUTERS/Clodagh Kilcoyne/File Photo

Overview

  • The ISM services PMI increased to 51.6 in April, up from 50.8 in March, reflecting a return to growth in the US services sector.
  • Key subindexes, including new orders, supplier deliveries, and employment, showed improvement, with new orders rising to 52.3 percent.
  • The input prices index surged to 65.1, the highest since January 2023, driven by inflationary pressures from supply bottlenecks and tariffs.
  • Employment in the services sector continued to contract but at a slower pace, with the employment index improving to 49.0 from 46.2 in March.
  • Eleven of 17 industries surveyed reported growth, led by accommodation, retail, and wholesale trade, while public administration and education lagged due to budget constraints.