The U.S. services sector expanded at a faster pace in April as the non-manufacturing business activity composite index was 55.2 in the month, compared to 53.1 in March, on a seasonally adjusted basis, the Institute for Supply Management reported Monday.
Economists polled by Thomson Reuters had expected a 54.1 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index rose to 60.8 from 58.3.
The employment index decreased to 51.3 from 53.6.
The business activity/production index grew to 60.9 from 53.4, the new orders index was at 58.2, up from 53.4; backlog of orders dipped to 49.0 from 51.5; new export orders increased to 57.0 from 49.5; inventories rose to 55.5 from 48.0; inventory sentiment jumped to 65.0 from 60.5; the supplier deliveries index slipped to 50.5 from 52.0; and imports rose to 55.5 from 50.5.
Members' general comments on business in the month included:
"Our outlook for 2014 remains on target. No significant changes with our customer base." (Management of Companies & Support Services)
"General business conditions are improving." (Information)
"Market conditions are generally steady; internal pressure to reduce overall cost of goods and services." (Finance & Insurance)
"Business levels have been stable. Our company made an acquisition this past month, so we are planning for revenue growth in the second half of 2014." (Real Estate, Rental & Leasing)
"Traffic and sales are up due to break in weather." (Accommodation & Food Services)
"Overall spending continues to trend upward, particularly for large dollar items, like vehicles and aircraft, as the state replenishes the fleet that was depleted during 2009-2013." (Public Administration)
"We are experiencing a pickup in sales, which has brought back a little optimism that we may have seen the floor, and things could be turning up. We are making investments to take advantage of the upswing to leverage as many sales options as possible." (Retail Trade)
