US ISM Services PMI rose from 51.2 to 51.9 in April, below expectation of 53.1. Looking at some details, business activity/production dropped from 55.4 to 52.0. New orders rose from 52.2 to 56.1. Employment dropped from 51.3 to 50.8. Prices rose from 59.5 to 59.6.
ISM said: “There has been a slight uptick in the rate of growth for the services sector, due mostly to the increase in new orders and ongoing improvements in both capacity and supply logistics. The majority of respondents are mostly positive about business conditions; however, some respondents are wary of potential headwinds associated with inflation and an economic slowdown.”
“The past relationship between the Services PMI® and the overall economy indicates that the Services PMI® for April (51.9 percent) corresponds to a 0.7-percent increase in real gross domestic product (GDP) on an annualized basis.”