ISM Expansion Continues In April

The ISM Services Index for April was unchanged from March at 55.4. This reading was slightly below the consensus of 56.1, but still shows that non-manufacturing is expanding. April's reading was the fourth consecutive month of expansion.

The employment index slipped to 49.5 from 49.8 while the backlog of orders fell to 49.5 from 55.5. The biggest change was the inventories index, which surged to 54.5 from 46.5.

The new orders index dropped to 58.2 from 62.3, reflecting a slowing of growth. Nonetheless, this report is positive for the economic outlook, indicating steady growth for the bulk of the nation's economy.