ISM Services Weaker Than Expected

by: Bespoke Investment Group

While today's better-than-expected employment report helped to boost positive sentiment in the market, the weaker than expected ISM Services report released 90 minutes later did little to dampen sentiment. While economists were looking for the ISM Services report to come in at a level of 54.0, the actual reading came in weaker at 53.1. This was the lowest reading since last July. Combining both the ISM Manufacturing and Services indices based on their weighting in the overall economy, the ISM for April came in at 52.8 vs. last month's reading of 54.0.

The table below breaks out the current readings of the ISM Services' 10 subcomponents and compares their readings to last month and one year ago. As shown in the table, while all the components are currently above 50, only three increased compared to last month and last year.