The activity of the service sector has sunk in the United States during the month of April, but the fall has been less than anticipated by the market consensus. The ISM April services, which analyzes the monthly evolution of the sector, has dropped to 41.8 from 52.5, (its lowest level since March 2009) but has been above the anticipated drop to 36.8.
But although the main data has been better than expected, the employment component It has collapsed to 30 from 47, well below the expected rise to 51. In addition, the new orders component it has sunk to 32.9 from 52.9, versus 58.3 forecast.
The data is published by the Institute for Supply Management (ISM) and shows trade conditions in the US non-manufacturing sector. A result greater than 50 indicates expansion of activity and a data below 50, like the current one, indicates contraction.
In addition, it is the first contraction that this sector shows, which represents approximately two thirds of US GDP, since the financial crisis of 2009. "Respondents are concerned about the continuous impacts of coronavirus in the supply chain, operational capacity, human resources and finances, as well as uncertain deadlines for resuming business and returning to normal"commented ISM President Anthony Nieves.
Analysts Berenberg explain that the smallest drop in the general indicator has been seen "inflated by the increase in the supplier delivery rate (+16.2 points, up to 78.3) due to significant interruptions in national and global supply chains, which have lengthened delivery times. "
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