ISM services dropped to 56.8 in April, down from 58.8 and missed expectation of 58.1. Employment component dropped -3 pts to 53.6.
It’s noted in the release that “there was a slowing in the rate of growth that was mostly attributed to the decline in the Employment and Supplier Deliveries indexes.” And, “the respondents have expressed concern regarding the uncertainty about tariffs and the effect on the cost of goods.”
Some response quoted here:
- “The trade tensions are impacting purchasing of steel and are causing suppliers to send letters of concern regarding contracted purchases for this year and the future based on these proposed tariffs.” (Construction)
- “Steel tariffs/232 have impacted our steel costs (pipes, fittings, valves, vessels [and the like]).” (Mining)
- “Some indicators of rising transportation costs, which will eventually affect product prices. Trade tariffs will cause unintended consequences on all industries, affecting production and non-production commodities.” (Professional, Scientific & Technical Services)
