US ISM Non-manufacturing: Slower in April but growth intact - Wells Fargo

The ISM Non-manufacturing Index dropped in April to 56.8. Analysts from Wells Fargo, noted that new orders improved while hiring eased from the impressive pace of recent months. 

Key Quotes: 

“Activity outside the manufacturing sector expanded at a slower pace in April, with the ISM non-manufacturing index slipping 2 points. At 56.8, however, the index still sits at a level consistent with solid growth in the economy.”

“Hiring activity slowed, with the employment index moving down 3 points to 53.6. We expect tomorrow’s nonfarm payroll report to show hiring has moderated from the 211,000 monthly average registered over the past six months.”

“Cost pressures continue to grow beyond the industrial sector. The prices paid index edged up to 61.8, notably above the level that pervaded from 2013-2017.”