US ISM Services PMI fell from 51.4 to 49.4 in April, well below expectation of 52.3. That’s the first contraction reading in after 15 months of growth. Business activity/production fell sharply from 57.4 to 50.9. New orders fell from 54.4 to 52.2. Employment tumbled from 48.5 to 45.9. Prices, however, jumped from 53.4 to 59.2.
ISM said: “The past relationship between the Services PMI® and the overall economy indicates that the Services PMI® for April (49.4 percent) corresponds to a 0.2-percent increase in real gross domestic product (GDP) on an annualized basis.”
