NEW YORK – The U.S. services sector expanded at a slower pace in as the non-manufacturing business activity composite index was 52.8 in April, compared to 57.3 in March, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
Economists polled by Thomson Reuters had expected a 57.4 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, closely watched for signs of inflation, dipped to 70.1 from 72.1.
The employment index decreased to 51.9 from 53.7.
The business activity/production index fell to 53.7 from 59.7, the new orders index was at 52.7, off from 64.1; backlog of orders dipped to 55.5 from 56.0; new export orders decreased to 53.5 from 59.0; inventories stayed at 55.5; inventory sentiment slid to 57.5 from 67.0; the supplier deliveries index grew to 53.0 from 51.5; and imports increased to 57.0 from 50.0.
Members' general comments on business in the month included:
“Business conditions [remain] unchanged. No supply impact from the Japan earthquake/tsunami, but continue to track with the supply base.” (Management of Companies & Support Services)
“Revenues are picking up slowly, but the growth is positive as compared to last month and the same month last year.” (Real Estate, Rental & Leasing)
“Looking forward with reserved caution. Cost of goods by this fall are a big worry.” (Accommodation & Food Services)
“Continuing economic uncertainty will curtail or delay project spending for the immediate future.” (Educational Services)
“Fuel prices continue to be challenging and in addition to shipping, are influencing the cost of materials.” (Public Administration)
“We are seeing price increases in many areas, and the lead times are stretching out. Our business activities are improving at a moderate rate.” (Wholesale Trade)
