US Services Sector Growth Unexpectedly Accelerates
The ISM Services PMI saw an unexpected increase, rising to 51.6 in April 2025, up from March's nine-month low of 50.8, and surpassing predictions of 50.6. The growth in new orders (52.3 compared to 50.4) and inventories (53.4 versus 50.3) accelerated, while business activity continued to remain positive, even though it slightly eased (53.7 compared to 55.9). Employment showed signs of contraction, albeit at a reduced rate (49 against 46.2). There was also a deceleration in supplier delivery performance (51.3 as opposed to 50.6), coupled with a notable surge in price pressures, reaching a peak not seen since February 2023 (65.1 in comparison to 60.9). "In terms of tariffs, respondents expressed greater concern over actual pricing effects than uncertainty and potential future pressures. They also highlighted federal agency budget cuts as a hindrance to business progress, but overall findings indicate improvement," stated Steve Miller, Chair of the Institute for Supply Management Services Business Survey Committee.
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