The U.S. services sector expanded at a faster pace in April as the non-manufacturing business activity composite index was 57.8 in the month, compared to 56.5 in March, on a seasonally adjusted basis, the Institute for Supply Management reported Tuesday.
Economists polled by Thomson Reuters had expected a 56.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index slipped to 50.1 from 52.4.
The employment index crept to 56.7 from 56.6.
The business activity/production index soared to 61.6 from 57.5, the new orders index was at 59.2, up from 57.8; backlog of orders rose to 54.5 from 53.5; new export orders dropped to 48.5 from 59.0; inventories increased to 51.0 from 49.5; inventory sentiment slid to 59.5 from 61.0; the supplier deliveries index dipped to 53.5 from 54.0; and imports fell to 51.5 from 55.5.
Members' general comments on business in the month included:
"Avian Influenza is causing concerns, but has not directly impacted our operations." (Agriculture, Forestry, Fishing & Hunting)
"Clients in oil refinery sector have reduced their capital spending due to declining oil prices." (Professional, Scientific & Technical Services)
"Definite signs of economic growth in most markets serviced. New construction and capital spending apparent." (Finance & Insurance)
"Still have backorders/shortages of IV solutions." (Health Care & Social Assistance)
"Pork prices are lower due to abatement of the PEDv virus. Chicken and beef prices are up due to higher demand and output. Corn prices and oil for gasoline have been the bright spot keeping prices from taking off higher." (Accommodation & Food Services)
"Overall we see positive trends; spending has improved." (Retail Trade)
"Low fuel prices continue to have a positive impact." (Transportation & Warehousing)
"Business remains strong for this time of year and looks good for the next 12-18 months." (Wholesale Trade)
