U.S. ISM Services survey indicates robust growth

U.S. ISM Services survey indicates robust growth

*The ISM Report on Business Services index, a composite of diffusion indexes on business activity, new orders, employment and supplier deliveries, recorded a very high 62.7, slightly below March’s 63.7 and higher than any other recording in history (Chart 1). The ISM prices index rose to 76.8, the third consecutive monthly recording above 70 (Chart 2). Obviously, this reflects strong growth in the services sectors and higher prices.

*The business activity index (62.1) and new orders index (63.2) declined slightly from March levels but they were decidedly in expansion territory, while the employment index (58.8) rose from its already high 57.2 March level (Chart 3) and the supplier deliveries index rose sharply to 66.1, reflecting slower deliveries stemming from high demand and bottlenecks.

*In the details of the ISM services survey, which are shown in not seasonally adjusted terms, the indexes for business activity, new orders (including both export and import orders and backlog of orders), employment, and supplier delivery slowdowns all rose in April from March.

*In the price index survey, respondents experiencing higher prices jumped to 58.4% from 52.0%; those who recorded prices as the same fell to 40.2% and only 1.2% were experiencing falling prices.

Chart 1.

Chart 2.

Chart 3

Mickey Levy, mickey.levy@berenberg-us.com

Member FINRA & SIPC
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