Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Services Sector Growth Slows 1.3% in April

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Services growth is shrinking, according to an Institute for Supply Management report released today. The Institute's Non-Manufacturing Index clocked in at 53.1% for April, down 1.3 percentage points from March and 0.9 points below analyst expectations.

An above-50 rating signals overall expansion, and the services sector has managed to increase its economic activity for 40 consecutive months. However, increasingly slow growth remains a worrisome sign for an overall economic recovery.

The index is comprised of 10 different components, from inventory sentiment to new orders. Each component remained above the 50% expansion mark, but messages were mixed across the board. The prices component fell 4.7 points to 51.2, while employment slowed to 52.0 after March 53.3 reading.

In a sign of positive future sentiment, the all-important new orders component fell 0.1 points but remained strong at 54.5. Inventories increased 4.5 points to 56.0, hinting that the sector may be expecting increased demand in the months ahead .

Of the 18 industries reflected in the index, 14 reported growth. Transportation and warehousing led the improvement, followed by retail trade and accommodation and food services. The four contracting industries were mining, education, health care and social assistance, and "other."

Read/Post Comments (0) | Recommend This Article (1)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2408003, ~/Articles/ArticleHandler.aspx, 8/29/2016 4:12:57 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,503.43 108.03 0.59%
S&P 500 2,180.38 11.34 0.52%
NASD 5,232.61 13.70 0.26%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes