USA News Today | Daily Us NewsPaper
Wednesday, June 4, 2025
  • Politics
  • Headlines
  • Local news
  • Business
  • Science
  • Lifestyle
  • Tech
USA News Today | Daily Us NewsPaper
No Result
View All Result
Home Business

U.S. Service Sector Activity Contracts For First Time Since December 2022

May 3, 2024
in Business


After growing for fifteen consecutive months, U.S. service sector activity unexpectedly contracted in the month of April, according to a report released by the Institute for Supply Management on Friday.

The ISM said its services PMI dipped to 49.4 in April from 51.4 in March, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 52.0.

With the unexpected decrease, the services PMI indicated activity in the sector contracted for the first time since December 2022.

The decline by the headline index partly reflected a notable slowdown in the pace of growth in business activity, as the business activity index slid to 50.9 in April from 57.4 in March.

New order growth also slowed compared to the previous month, with the new orders index falling to 52.2 in April from 54.4 in March.

The report also said the employment index fell to 45.9 in April from 48.5 in March, suggesting an accelerated contraction in employment.

Meanwhile, the ISM said the prices index jumped to 59.2 in April from 53.4 in March, indicating notably faster price growth.

“Survey respondents indicated that overall business is generally slowing, with rates varying by company and industry,” said Anthony Nieves, Chair of the ISM Services Business Survey Committee.

“Employment challenges continue to be primarily due to difficulties in backfilling positions and/or controlling labor expenses,” he added. “The majority of respondents indicate that inflation and geopolitical issues remain concerns.”

On Wednesday, the ISM released a separate report showing a modest contraction by U.S. manufacturing activity in the month of April.

The ISM said its manufacturing PMI slipped to 49.2 in April from 50.3 in March. Economists had expected the index to edge down to 50.0.

The slight pullback by the index came after it indicated a modest expansion in March following sixteen consecutive months of contraction.

Copyright © 2024, RTTNews.com, Inc. All Rights Reserved.

Tags: Breaking NewsEconomic NewsForex Top StoryFront Page NewsGeneral NewsTop story

Related Posts

U.S. Consumer Sentiment Tumbles To Six-Month Low In May

by USA News Editor
May 13, 2024
0

A report released by the University of Michigan on Friday showed a substantial deterioration in U.S. consumer sentiment in the...

U.S. Job Growth Falls Short Of Estimates In April, Unemployment Rate Ticks Higher

by USA News Editor
May 3, 2024
0

After reporting stronger than expected job growth over the past several months, the Labor Department released a report on Friday...

U.S. Factory Orders Surge In Line With Estimates In March

by USA News Editor
May 2, 2024
0

New orders for U.S. manufactured goods surged in line with economist estimates in the month of March, according to a...

U.S. Labor Productivity Increases Modestly In Q1, Labor Costs Spike

by USA News Editor
May 2, 2024
0

A report released by the Labor Department on Thursday showed labor productivity in the U.S. increased by less than expected...

U.S. Trade Deficit Narrows Slightly To $69.4 Billion In March

by USA News Editor
May 2, 2024
0

The U.S. trade deficit edged slightly lower in the month of March, according to a report released by the Commerce...

OECD Raises Global Growth Forecasts

by USA News Editor
May 2, 2024
0

The Organization for Economic and Co-operation and Development on Thursday lifted the global growth forecast for this year and next...

Advertisement

Today Trend USA News

Linkin Park Announce Greatest Hits Album, Share Previously Unreleased 'Friendly Fire'

Linkin Park Announce Greatest Hits Album, Share Previously Unreleased 'Friendly Fire'

1 year ago
Olivia Rodrigo Launches Reproductive Rights Initiative 'Fund 4 Good'

Olivia Rodrigo Launches Reproductive Rights Initiative 'Fund 4 Good'

1 year ago

Morgan Wallen Arrested In Nashville After Allegedly Throwing Chair Off Bar Rooftop

1 year ago

Lil Durk Drops Reflective New Single 'Old Days'

1 year ago

Accelerated Aging Poses Cancer Risk, Study Reveals

1 year ago

Bruce Springsteen To Become Ivors Academy Fellow

1 year ago

Popular News Today

    • About
    • Contact Form
    • Terms of Use
    • Privacy Policy
    • DMCA

    © 2024 USANEWS.ONE

    No Result
    View All Result
    • Politics
    • Headlines
    • Local news
    • Business
    • Science
    • Lifestyle
    • Tech

    © 2024 USANEWS.ONE

    Get more stuff like this
    in your inbox

    Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

    Thank you for subscribing.

    Something went wrong.

    We respect your privacy and take protecting it seriously