- Prior month 54.0
- Non-manufacturing PMI 53.6 vs 53.7 estimate
- Business activity 55.9 vs 53.9 last month
- Employment 48.0 versus 45 point to last month
- New Orders 53.5 vs 60.6 last month
- Prices paid 70.7 vs 70.7 last month
- Supplier deliveries 56.8 versus 56.2 last month.
- Inventories 53.1 versus 54.8 last month.
- Backlog of orders 53.0 versus 53.6 last month
- New export orders 52.1 versus 50.7 last month
- Import 54.7 versus 55 point to last month
- Inventory sentiment 55.1 versus 54.3 last month
Summary of the details from the report:
- 14 industries reported growth in April (vs 13 in March); 3 industries remained in contraction
- Services PMI: 53.6% – 1.1 points above 12-month average (52.5%)
- 12-month average: 52.5% – up 0.2 points from March (52.3%)
- Fourth straight monthly increase in the 12-month average (up from 51.7% in Dec 2025)
- Prices Index: Flat but above 70 – sustained pressure from higher oil and fuel costs
- Supplier Deliveries: Slower – 3.9 points above its 12-month average
- Business Activity, Supplier Deliveries, and Employment increased
- New Orders: Fell sharply (-7.1 points), offsetting gains in other components
- Backlogs: Remained in expansion and well above 12-month average (46.4%)
- Exports and imports: Expanded for third straight month (longest streak since Jul–Oct 2024)
- Commodities: No items reported down in price
- Rising prices: Aluminum, copper, lumber, petroleum products, software licensing
- Commentary: March demand partly driven by front-loading ahead of price increases; less evident in April
- Energy impact: Petroleum costs not fully passed through yet, suggesting continued elevated price pressures ahead
- Outlook: Prices Index likely to stay elevated for several months as energy costs filter through supply chains
Respondent comments:
Positive comments
- Health care: “finished strong… beat revenue expectations by 6 percent… patient volumes remain strong… supply chains remained resilient… forecast is good for the next quarter”
- Professional services: “continues to expand, supported by strong new orders… driving sustained demand”
- Utilities: “remain stable to slightly expanding… supported by ongoing grid modernization… overall outlook remains positive”
- Wholesale trade: “activity remains high… data centers… show no signs of slowing down”
- Supply chains (select sectors): “functioning quite well compared to expectations… few significant back orders”
Negative comments
- Construction/housing: “buyers on the fence… affordability continues to be the hinderance… rising oil prices threaten that hard work”
- Real estate: “housing sales slowed… well below historical norms… lowest since 1995… prolonged conflict could maintain structural pressure”
- Business investment: “customers… back off equipment purchases… recovery… now turning off”
- Cost pressures: “higher gas and diesel pricing… fuel surcharges… becoming requests” and “increase in expenses… 7 percent to 9 percent”
- Supply chain/logistics: “ongoing supply chain volatility… elevated transportation costs… inflation-driven pricing”
- Materials inflation: “copper, aluminum, and steel… driving sustained pricing pressure”
- Public sector: “significant impacts due to increasing fuel costs… expenditures… increased… fuel surcharges”
- Employment tone: “softer employment… shaping a more cautious outlook”
- Macro/geopolitics: “war… impacts… expected flow through of higher oil prices… geopolitical concerns remain in play”
Employment rose but less than 50 once again. New orders fell sharply but still expanding. Prices remain steady. Overall a mixed/as expected report
