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US nonmanufacturing index decelerates in March; employment portion falls three percentage points

May 03, 2018

Economic activity in the US nonmanufacturing sector decelerated in April, according to the Institute for Supply Management’s nonmanufacturing index released today.

ISM’s nonmanufacturing index fell in April to a reading of 56.8 from March’s reading of 58.8. The slowing in the rate of growth was mostly attributed to the decline in the employment and the supplier deliveries portions of the index.

Readings above 50 generally indicate improving conditions.

The employment portion of the index decreased in April to 53.6 from the March reading of 56.6. Ten industries reported increased employment, and one industry reported decreased employment. Comments from respondents include: “Competition for labor” and “Higher overall activity levels are requiring some targeted hiring of personnel.”