 |
|
| ISM April Service-Sector Data (#1) - May. 3, 2006 |
|
Summary
The Institute for Supply Management reported this morning that its index designed to measure the economy's service-sector activity rose a larger-than-expected 2.5 points during April, to a reading of 63.0. Meanwhile, the index's price component spurted 10 points during the month.
_____
* Earlier this morning, the Institute for Supply Management released April results for its service-sector index. Per the ISM report, the index rose to a reading of 63.0 in April, up from March's 60.5
* The April result came in above a consensus forecast that was looking for something a bit over 59.0.
* In April of 2005, ISM's service-sector index stood at 60.4, 2.6 points or 4.1% below the latest result.
* For April of 2006, the prices-paid component rose to 70.5, a sharp 10-point or 16.5% increase from March's 60.5. Moreover, this was not significantly below this component's all-time reading of 78.4, occurring in September of last year.
(NOTE: Overall index and sub-index readings above 50.0 indicate expansion; readings below 50.0 indicate contraction.)
* In addition to the statistical price-component spike, 54% of ISM respondents reported paying higher prices during April, up substantially from 36% in March. Only 2% of respondents reported paying lower prices during April.
Now that ISM has released both its service-sector and manufacturing indexes for April, I will shortly publish a more detailed analysis of each measure.
_____
|
|
|
|
|
|