In April 2025, the Services PMI® registered 51.6%, indicating expansion for the 10th consecutive month. This marks a 0.8 percentage point increase compared to March’s figure of 50.8%. The Business Activity Index stood at 53.7%, a 2.2 percentage point decrease from March, while the New Orders Index rose to 52.3%, up 1.9 percentage points from the previous month. The Employment Index remained in contraction territory at 49%, though it increased by 2.8 percentage points compared to March.
The Supplier Deliveries Index registered 51.3%, reflecting slower supplier performance for the fifth consecutive month. Prices paid by services organizations increased for the 95th consecutive month, with the Prices Index registering 65.1%, a 4.2 percentage point increase from March.
Eleven industries reported growth in April, including Accommodation & Food Services, Wholesale Trade, and Mining. Six industries reported contraction, such as Agriculture, Forestry, Fishing & Hunting, and Professional, Scientific & Technical Services.
Respondents cited concerns about tariffs, federal agency budget cuts, and uncertainty surrounding government grants. Despite these challenges, overall results are improving. The April reading of 51.6% corresponds to a 1-percentage point increase in real gross domestic product (GDP) on an annualized basis.
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