Two readings on activity in the services sector painted a mixed picture of the state of US economic activity.
The Institute for Supply Management’s ISM services index increased to 51.6 in April, its highest reading since January 2023.
“Regarding tariffs, respondents cited actual pricing impacts as concerns, more so than uncertainty and future pressures,” Chair of the Institute for Supply Management Service Business Survey Steve Miller said in the release. “Respondents continue to mention federal agency budget cuts as a drag on business, but overall, results are improving.”
Meanwhile, S&P Global’s US Services PMI, also released on Monday, fell to a reading of 50.8, the lowest reading since November 2023.
“While tariff announcements mean manufacturing dominates the news, a worrying backstory is developing in the vastly larger services economy, where business activity and hiring have come closer to stalling in April amid plunging business confidence,” S&P Global Market Intelligence chief business economist Chris Williamson said in the release.
