US ISM Services PMI dropped from 58.3 to 57.1 in April, below expectation of 59.0. Looking at some details, business activity/production rose from 55.5 to 59.1. New orders dropped from 60.1 to 54.6. Employment dropped from 54.0 to 49.5. Prices rose from 83.8 to 84.6, an all-time high.
ISM said: “There was a pullback in the composite index, mostly due to the restricted labor pool (impacting the Employment Index) and the slowing of new orders growth. Business activity remains strong; however, high inflation, capacity constraints and logistical challenges are impediments, and the Russia-Ukraine war continues to affect material costs, most notably of fuel and chemicals.”
