The Institute for Supply Management has released its data for April’s ISN non-Manufacturing sector and the reading is indicative of weaker and slowing growth. The overall NMI came in at 53.5% versus 56.0 in March and under the consensus expectation of 56.0 from Bloomberg. New orders and employment are both the weakest readings seen this year.
- Business Activity Index at 54.6%, down by 4.3 percentage points lower than the 58.9 percent reported in March.
- New Orders Index at 53.5%, a decrease of 5.3 percentage points.
- Employment Index at 54.2%, a decrease of 2.5 percentage points.
- The Prices Index decreased 10.3 percentage points to 53.6 percent, indicating prices increased at a significantly slower rate in April when compared to March.
This is the crux of the report and pretty much what you need to focus on: “Respondents’ comments affirm the slowing rate of growth. In addition, they remain concerned about rising fuel costs and the impact on shipping, transportation and petroleum-based product costs.” The good news is that the ISM data in the services (non-manufacturing) economy is still above the 50.0% line showing growth over recessionary trends. The bad news is that this is getting dangerously close to the red-line of contraction.
JON C. OGG
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
