MW: Service industries contracting at slower pace in April
U.S. service-producing industries contracted again in April for the seventh straight month, but at a slower pace than in March, according to the Institute for Supply Management index released Tuesday.
The ISM non-manufacturing index improved to 43.7% from 40.8% in March.
Readings under 50% indicate most firms surveyed said business was getting worse in April. The index has been below 50% since October; it bottomed at 37.4% in November after a collapse in confidence followed the bankruptcy of Lehman Bros. and the government rescue of several other financial institutions.
Economists surveyed by MarketWatch were looking for the ISM to increase to 42.0%.
Seven of 18 industries were growing in April, led by real estate, entertainment, and retail.
The new orders index improved to 47.0% from 38.8%. The production index rose to 45.2% from 44.1%. The employment index improved to 37% from 32.3%, indicating a slackening in the pace of job destruction.
