The ISM Service Index for April dropped from 51.4 to 49.4, indicating contraction (sub-50) for the first time since late 2022. Within the composite, the business activity index (a measure of current production) dropped from 57.4 to 50.9, a four-year low. The employment sub-index (already in contraction) slipped from 48.5 to 45.9 as purchasing managers expect to hire fewer workers in the coming months. The forward-looking new orders index declined from 54.4 to 52.2, still expanding but at a lesser pace.

Read the full article

Read more Economic Commentary