The services sector continued to expand for the 11th straight month in April albeit on a slower pace than the previous month, the Institute for Supply Management (ISM) reported.
- The Services PMI was recorded at 62.7% in March, lower than February’s all-time high of 63.7%. A reading above 50% indicates expansion while below 50% shows a contraction.
- Respondents say capacity is now increasing as quarantines are gradually removed.
- Other factors for the latest reading include pent-up customer demand, increase in sales, tight labor pool, and challenges on the supply chain.
- The Business Activity Index fell 6.7 percentage points to 62.7% in April from another all-time high 69.4% in March.
- The New Orders Index declined 4 percentage points to 63.2% from March’s all-time high of 67.2%.
- Meanwhile, the Supplier Deliveries Index gained 5.1 percentage points to 66.1% in April from 61% in March.