ISM Services PMI Contracts for First Time Since December 2022

The Institute of Supply Management (ISM) has released its April services purchasing managers' index (PMI). The headline composite index is at 49.4, falling short of the 52.0 forecast. The latest reading moves the index into contraction territory for the first time since December 2022.

Here is an excerpt from the report summary:

Nieves continues, “The decline in the composite index in April is a result of lower business activity, slower new orders growth, faster supplier deliveries and the continued contraction in employment. Survey respondents indicated that overall business is generally slowing, with rates varying by company and industry. Employment challenges continue to be primarily due to difficulties in backfilling positions and/or controlling labor expenses. The majority of respondents indicate that inflation and geopolitical issues remain concerns.”

Unlike its much older kin, the ISM manufacturing series, there is relatively little history for ISM's non-manufacturing data, especially for the headline composite Index, which dates from 2008. The chart below shows the non-manufacturing composite.

ISM Services PMI