US services sector growth slows in April – PMI

US services sector growth slowed for a second consecutive month in April, as weakening demand and persistent cost pressures weighed on activity, according to a survey released Tuesday by the Institute for Supply Management (ISM).

The ISM nonmanufacturing purchasing managers index edged down to 53.6 from 54.0 in March, coming in just below economists’ expectations.
While still above the 50 threshold that signals expansion, the reading reflects a moderation in growth across a sector that accounts for more than two-thirds of the US economy.

A sharp decline in new orders drove much of the slowdown, with the index falling to 53.5 from a three-year high of 60.6 in March—the largest drop since March 2023.
Meanwhile, cost pressures remained elevated, with the prices paid index holding steady at 70.7, its highest level since late 2022.

Rising energy costs linked to the US-led conflict with Iran, along with ongoing supply chain disruptions, continue to strain businesses. Supplier delivery times lengthened further, with the relevant index climbing to 56.8, the highest since July 2022.