US ISM Services PMI from 50.8 rose to 51.6 in April, beating expectations of 50.6. The gain was driven by stronger new orders, which rose from 50.4 to 52.3.
However, business activity slipped to 53.7 from 55.9. Employment rebounded from 46.2 to 49.0, but stayed in contraction territory for the second consecutive month.
The most notable development was the sharp jump in the prices index—from 60.9 to 65.1—the highest since January 2023.
Overall, the data point to modest economic growth, with ISM estimating a 1% annualized GDP expansion based on the services reading.
