ISM Services PMI Drops To 49.4, Missing Analyst Expectations

On May 3, 2024, the Institute for Supply Management released ISM Services PMI report for April. The report indicated that ISM Services PMI declined from 51.4 in March to 49.4 in April, compared to analyst consensus of 52.0. Numbers below 50 show contraction.

New Orders Index declined from 54.4 in March to 52.2 in April, while Prices Index increased from 53.4 to 59.2.

The Institute for Supply Management commented: “The decline in the composite index in April is a result of lower business activity, slower new orders growth, faster supplier deliveries and the continued contraction in employment.”

The Institute for Supply Management has also noted that overall business was generally slowing, although rates varied by company and industry.

Today, traders also had a chance to take a look at the final reading of the S&P Global Services PMI report. The report showed that S&P Global Services PMI declined from 51.7 in March to 51.3 in April, compared to analyst consensus of 50.9.

U.S. Dollar Index is trying to settle back above the 104.50 level as traders react to the weaker-than-expected ISM Services PMI report. Treasury yields also rebound after the strong pullback, which was triggered by the weak Non Farm Payrolls report.

Gold settled near the $2290 level after the release of ISM Services PMI report. Today, gold markets are under pressure despite falling Treasury yields and U.S. dollar’s pullback.

SP500 pulled back towards the 5110 level as traders focused on the slowdown in the services sector.

For a look at all of today’s economic events, check out our economic calendar.