Breaking: ISM Non-Manufacturing PMI plummets to 41.8 in April vs. 36.8 expected
|The economic activity in the US' service sector contracted at a strong pace in April with the Institute for Supply Management's (ISM) Non-Manufacturing PMI slumping to 41.8 from 52.5 in March. Despite the sharp drop, this reading came in higher than the market expectation of 36.8.
The underlying details of the report revealed that the New Orders Index plummeted to 32.9 from 52.9, the Employment Index fell to 30 from 57 while the Prices Paid Index rose to 55.1 from 50.
Commenting on the findings of the survey, "respondents are concerned about the coronavirus impact on the supply chain, operational capacity, human resources and finances, as well as the ramifications for the overall economy," said Anthony Nieves, Chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee.
Market reaction
Wall Street's main indexes edged higher after this report. As of writing, both the S&P 500 and the Nasdaq Composite indexes were up more than 1.5% on a daily basis.
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