New York, NY, United States (4E) – The nonmanufacturing sector in the U.S. showed signs of expansion in April, according to an Institute for Supply Management (ISM) report released Monday.
The nonmanufacturing purchasing managers index (PMI) by ISM rose to 55.2 in April from 53.1 in the previous month. Analysts surveyed by The Wall Street Journal had forecast April’s PMI to rise, but only to 54.1.
In a separate report released Monday, data provider Markit reported that its version of the service-sector PMI fell slightly to 55.0 in April from 55.3 in the prior month. Like the ISM report, readings above 50 for the Markit index suggest expanding activity on month.
The ISM inventory index rose sharply to 55.5 after sliding into contraction territory, 48.0, in March from 50.5 in the previous month. The prices index climbed to 60.8 from 58.3.
New demand among non-manufacturers grew in April with the new orders index rising to 58.2 from 53.4 in March and 51.3 in the earlier month.
Monday’s ISM report also showed that the index for business activity/production rose to 60.9 after it fell to 53.4 in March from February’s 54.6. Meanwhile, the employment index slid to 51.3 from 53.6.