U.S. Services-Sector Activity Continued to Expand in April -- ISM

By Jessica Coacci

U.S. services-sector activity continued to rise in April though price pressures from the war in Iran weighed on growth, a survey of managers found.

The Institute for Supply Management's purchasing managers index for services providers was 53.6 compared with 54.0 in March. Economists polled by The Wall Street Journal expected a reading of 54.0. A reading above 50 suggests economic growth, while one below 50 indicates contraction.

The prices index held steady at 70.7 in April from March, the highest figure since October 2022. The supplier deliveries index also indicated slower performance compared with March, the survey said.

"There were several comments from respondents stating that they have yet to see petroleum price increases impacting petroleum-related products, so we expect to see continued elevated readings for the prices index for several months," said Steve Miller, chair of the ISM.

Meanwhile, the employment index contracted for the second month in a row.

Fourteen industries reported growth in April, one more than in March, and the number reporting contraction remained at three, the survey said.

Write to Jessica Coacci at [e-mail]

(END) Dow Jones Newswires

05-05-26 1053ET