Washington – The services sector of the US economy showed slightly lower growth in April after hitting a record in March.
The Institute for Supply Management in the United States (ISM, for its English acronym) reports that according to its monthly survey, the expansion of the service sector It fell slightly to 62.7, one percentage point below the record of 63.7 in March.
ISM is a US-based non-profit educational association serving professionals and organizations with a strong interest in supply management. Among other things, it publishes an index of industrial activity in the country. A reading above 50 indicates an expansion in the sector. The April figure marks the eleventh consecutive month that the sector has grown since the contraction it suffered in April and May of last year as a result of the epidemic..
On the other hand, the ISM reported that manufacturing activity also decreased in April, to settle at 60.7. This decrease was attributed to disruptions in supply chains.
The number in the services sector shows that orders and business activity have decreased even as employment increases. Seventeen service sectors recorded growth in April. Agriculture was the only activity to register a decline in the last month.
As in the case of manufacturing, the decline in this case is also attributed to disruptions in supply chains.
“The expansion of the services sector continued in April despite obstacles presented by supply chain disruptions.”Noted Rubella Farooqui, an economist at High Frequency Economics. “The outlook for the services sector continues to look promising, thanks to the resumption of business activity.”