Economics

Services in U.S. Expand at Second-Strongest Pace on Record

  • ISM index unexpectedly retreats as orders, activity cool
  • Firms pay more for materials, delivery times lengthen

    

Photographer: Luke Sharrett/Bloomberg
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U.S. service providers expanded in April at the second-fastest pace in data back to 1997, cooling slightly from the prior month as business activity and order growth pulled back from record highs.

The Institute for Supply Management’s services index unexpectedly fell to 62.7 last month from a record 63.7 in March, data showed Wednesday. Readings above 50 signal growth.