US Services Sector Dips But Hiring Still Positive

The pace of expansion in the U.S. services sector eased from a seven-month high in April on a dip in new business growth, but hiring in the sector accelerated to its highest since June, an industry report showed on Tuesday.

Financial firm Markit said its final reading of its Purchasing Managers Index for the services sector slipped to 57.4 in April, a level that was down from both the preliminary April read of 57.8, as well as the final March read of 59.2. March’s level was the highest since August.

A reading over 50 signals expansion in economic activity.

 
Markit’s April reading of employment at services companies, meanwhile, rose to a 10-month high of 55.0 from March’s 54.0. However, this was below the preliminary reading of 55.4.

The services index’s new business component pulled back from the month before, when it had notched its highest level since September.

Markit’s composite PMI, a weighted average of its manufacturing and services indexes, fell to 57.0 from 59.2 in March. The preliminary reading was 57.4. Last week, Markit’s final read on U.S. manufacturing activity showed slower growth in April.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.