Growth at U.S. non-manufacturing businesses accelerated in April at the fastest rate since January, the Institute for Supply Management reported today.
The ISM’s business activity index was at 56.0 percent last month, surpassing the 53.0-percent median forecast from a survey of 72 economists by Bloomberg News. The index had been at 52.4 percent in March, 54.3 percent in February and 59.0 percent in January. The average for the past 12 months is 56.5 percent.
The monthly Non-Manufacturing ISM Report on Business is based on a national survey of purchasing and supply executives. An index of 50 is neutral; higher numbers indicate growth.
“Non-manufacturing business activity increased for the 49th consecutive month in April,” said Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee and senior vice president for supply management at Hilton Hotels Corp.
“Thirteen non-manufacturing industries reported increased activity in April,” he said. The sectors reporting growth last month were, in order, arts, entertainment and recreation; accommodation and food services; transportation & warehousing; utilities; information; public administration; other services; retail trade; real estate, rental and leasing; finance and insurance; construction; educational services; and health care and social assistance. The two showing less activity than in March were wholesale trade; and professional, scientific and technical.
“There is continued concern with fuel and energy costs,” Nieves said, but “the overall indication in April is, continued economic growth in the non-manufacturing sector at a faster pace than in March.”
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New orders and employment activity in the non-manufacturing sector both increased in April from March’s pace, the ISM said.
The ISM’s New Orders Index increased 3.6 percentage points to 55.5 percent, the highest since December, while the New Export Orders Index increased 7.0 percentage points to 55.5 percent.
The Employment Index rose to 51.9 percent last month from March’s 50.8 percent.
The Institute for Supply Management, the publisher of Inside Supply Management magazine, produces monthly Reports on Business for the manufacturing and non-manufacturing sectors. Additional information is available at www.ism.ws.
