Wed, Jan 20, 2021 @ 06:11 GMT
Home Contributors Fundamental Analysis ISM Non-Manufacturing Perks Back Up in April

ISM Non-Manufacturing Perks Back Up in April

Service sector activity rebounded in April after softening in March. The ISM non-manufacturing index rose 2.3 points to 57.5 in April, mostly recouping momentum lost in March. April’s increase bested consensus.

Service Sector Bounces Back From Slip in March

After slipping 2.4 points in March, the ISM non-manufacturing index bounced back to 57.5 in April. Both production and new orders led the improvement in April, which reinforces our call for economic activity to rebound in Q2.

The new orders index added 4.3 points to post its current cycle high of 63.2. Demand was boosted by better global economic conditions, as new export orders jumped 3 points to 65.5.

Employment Remained Muted in April

Employment was the only major component that did not improve in April, slipping another 0.2 points to 51.4 – a level that still signals expansion, but at a slower pace. Respondents noted a short supply of labor for the third straight month.

Price pressures returned in April which should reassure the Fed that March softness was likely transitory and inflation is moving in the right direction.

Wells Fargo Securitieshttp://www.wellsfargo.com/
Wells Fargo Securities Economics Group publications are produced by Wells Fargo Securities, LLC, a U.S broker-dealer registered with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Securities Investor Protection Corp. Wells Fargo Securities, LLC, distributes these publications directly and through subsidiaries including, but not limited to, Wells Fargo & Company, Wells Fargo Bank N.A, Wells Fargo Advisors, LLC, and Wells Fargo Securities International Limited. The information and opinions herein are for general information use only. Wells Fargo Securities, LLC does not guarantee their accuracy or completeness, nor does Wells Fargo Securities, LLC assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or as personalized investment advice. Wells Fargo Securities, LLC is a separate legal entity and distinct from affiliated banks and is a wholly owned subsidiary of Wells Fargo & Company © 2010 Wells Fargo Securities, LLC.

Featured Analysis

Learn Forex Trading