Activity in the U.S. service sector grew at a faster than expected rate in the month of April, the Institute for Supply Management revealed in a report on Wednesday.
The ISM said its non-manufacturing index rose to 57.5 in April from 55.2 in March, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 55.8.
"In April the non-manufacturing sector reflected strong growth after a slowing in the rate from the previous month," said Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee.
He added, "Respondents' comments are mostly positive about business conditions and the overall economy."
The bigger than expected increase by the headline index came as the business activity index climbed to 62.4 in April from 58.9 in March and the new orders index jumped to 63.2 from 58.9.
The report also said the prices index increased to 57.6 in April from 53.5 in March, indicating a faster rate of price growth.
While the employment index edged down to 51.4 in April from 51.6 in March, the reading above 50 still indicates job growth in the service sector.
A separate report released by the ISM on Monday showed that growth in manufacturing activity slowed more than expected in the month of April.
The ISM said its purchasing managers index dropped to 54.8 in April from 57.2 in March, while economists had expected the index to dip to 56.5.
by RTT Staff Writer
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