US Services Index Shrinks as Activity Gauge Hits Four-Year Low
- ISM gauge dropped 2 points in April to 49.4; estimate 52
- Measures of demand and output retreated while prices rose
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The US services sector unexpectedly contracted in April for the first time since 2022 as a gauge of business activity slumped to a four-year low and a measure of input costs rose.
The Institute for Supply Management’s composite gauge of services fell 2 points to 49.4, the lowest level since December 2022. Readings below 50 indicate contraction, and the April figure was lower than all estimates in a Bloomberg survey of economists.