US services sector activity strengthens a bit in April, ISM says
By Alexander Bueso
Date: Wednesday 03 May 2023
(Sharecast News) - Activity in the US services sector picked up a bit last month with both new orders and prices paid rising at an accelerated pace, the results of a closely followed survey showed.
The Institute for Supply Management's services sector Purchasing Managers' Index improved from a reading of 51.2 in March to 51.0 for April.
Economists had forecast a reading of 52.0.
A key sub-index for new orders strengthened from 52.2 to 56.1, while that for employment dipped from 51.3 to 50.8.
The sub-index for prices paid meanwhile ticked higher from 59.5 to 59.6.
In parallel, companies whittled down their stockpiles with the sub-index linked to inventories retreating from 52.8 to 47.2.
Survey participants' responses appeared to indicate slightly lower price pressures, yet most purchasing managers appeared to be relatively sanguine regarding the outlook for demand.
Commenting on the survey results, Ian Shepherdson, chief economist at Pantheon Macroeconomics, said that recent volatility in dthe index notwithstanding, the underlying trend was pointing lower.
Neither was it clear that the index was reliable as a leading indicator of anything, he added.
"Elsewhere, the prices paid component was little changed. It tends to lead wage growth by a few months, and it continues to point to a sharp slowdown in the rate of increase over the spring and summer."
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