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Wednesday, May 04, 2022

ISM® Services Index Decreased to 57.1% in April, Employment Contracted

by Calculated Risk on 5/04/2022 10:07:00 AM

(Posted with permission). The ISM® Services index was at 57.1%, down from 58.3% last month. The employment index decreased to 49.5%, from 54.0%. Note: Above 50 indicates expansion, below 50 in contraction.

From the Institute for Supply Management: Services PMI® at 57.1% April 2022 Services ISM® Report On Business®

Economic activity in the services sector grew in April for the 23rd month in a row — with the Services PMI® registering 57.1 percent — say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business®.

The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: “In April, the Services PMI® registered 57.1 percent, 1.2 percentage points lower than March’s reading of 58.3 percent. The Business Activity Index registered 59.1 percent, an increase of 3.6 percentage points compared to the reading of 55.5 percent in March, and the New Orders Index figure of 54.6 percent is 5.5 percentage points lower than the March reading of 60.1 percent.
Employment activity in the services sector contracted in April. ISM®’s Employment Index registered 49.5 percent, down 4.5 percentage points from the reading of 54 percent registered in March. Comments from respondents include: “Job openings exist, but finding talent to fill them remains a struggle across most industry sectors and job categories” and “Demand for employment remains hypercompetitive; there is just not enough qualified personnel available.”
emphasis added