ISM Services Index Surpasses Market Expectation in April


   
Maria Eugenia Garcia
DTN Energy Editor

   HOUSTON, TX, (DTN)-- U.S. business activity in service sector rose by 0.8 
percentage points to 51.6% in April, from 50.8% recorded in March, according to 
Institute of Supply Management data released Monday. The figure was above 
market expectations for an expansion of 50.4%.

   "Eleven industries reported growth in April, a drop of three from the 14 
industries that reported in January and February. The Services PMI has expanded 
in 55 of the last 58 months dating back to June 2020. The April reading of 51.6 
% is 1 percentage point below the 12-month average reading of 52.6 %." said 
Anthony Nieves, CPSM, Chair of the Institute for Supply Management Services 
Business Survey Committee.

   The ISM Report is based on data compiled from purchasing and supply 
executives nationwide. 

   "Regarding tariffs, respondents cited actual pricing impacts as concerns, 
more so than uncertainty and future pressures. Respondents continue to mention 
federal agency budget cuts as a drag on business, but overall, results are 
improving," Nieves said.

   Accommodation and food services; wholesale trade; mining; real estate, 
rental and leasing; retail trade; arts, entertainment and recreation; health 
care and social assistance; transportation and warehousing; information; 
educational services, and utilities, were among the industries reporting growth 
in April.

   In contrast, agriculture, forestry, fishing and hunting; professional, 
scientific and technical services; finance, and insurance; management of 
companies and support services; public administration, and construction, showed 
a contraction in the reference month.

   Despite the better-than-expected ISM Service data, the U.S. dollar index 
continued its downward trend, falling by 0.235 points against a basket of 
foreign currencies to 99.605. Meanwhile, the front-month NYMEX WTI futures 
contract fell by $1.57 to %56.72, the lowest level since September 30, 2021, 
when it was at $56.98, according to DTN Energy data.




(c) Copyright 2025 DTN, LLC. All rights reserved.