US Service Sector Booms Over April

US Service Sector Booms Over April

Wednesday 5th May 2021 – 15:07 (BST)

Figures released by the Institute for Supply Management (ISM) have shown that the US service sector expanded at record pace over April as demand returned following recent coronavirus restrictions.

Up to 64.7 from an already impressive 63.1 in March, the latest readings hinted that recent stimulus is helping boost spending in key areas of the economy and represents the highest level of growth since October 2009.

There was solid expansion within US manufacturing too as demand for goods remained strong. However, supply chain issues acted as a drag on production and a reading of 60.7 was lower than expected over April.

The news follows the latest ADP private employment report earlier today that showed US private firms added 742,000 jobs over the same time period, with a large proportion gained within the leisure and hospitality sector.

Attentions now turn to Fridays non-farm payrolls for April. Analysts are expecting 978,000 new jobs to have been created within non-agricultural sectors over the last month, with some hoping for record post-coronavirus growth.