Source: Economics Group of Wells Fargo Bank, N.A.
Summary
Service-providers are by no means immune to tariffs, even if the impact is less direct than for manufacturers. The ISM Services Index rose slightly in April, but prices paid rose to a two-year-high and business activity slowed.Not as Bad as Expected
Service sector activity quickened slightly in April with the ISM Services Index coming in at 51.6, up from 50.8 in March (chart). The business activity index at 53.7 is still expanding, but at a slower pace than March when it registered a reading of 55.9 (chart). The other components that feed into the headline came in slightly higher than they did last month. New orders rose slightly to 52.3. Employment was still in contraction, but is now contracting at a more modest pace, and Supplier Deliveries came in at 51.3, up from 50.6 last month.