Updated: 06-May-08 11:00 ET

April ISM Services

Updated: 06-May-08 11:00 ET

Highlights

• Broad based improvement in the components. 
• Business Activity component has been above 50 for past three months. 
• Employment index improved significantly, mirroring the improved April payroll data.
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Key Factors

Big Picture

• The ISM services index is not a major economic indicator.  It is a survey that provides some general indications of trends in the services sector, but not much more.  The index dipped surprisingly in January, but has improved each month since then.  At 52.0 for April and with an employment index above 50, this month's reading provides confirmation of the improved trends in other economic series and has helped ease some of the alarmist concerns about economic conditions.