US services growth cools as new orders drop sharply
U.S. services growth slowed in April as new orders saw their largest drop in three years. High energy costs kept input price pressures at multi-year highs.
The United States services sector slowed for a second month in April as the ISM nonmanufacturing index fell to 53.6. New order growth dropped 7.1 points to 53.5, the largest decline since March 2023. Persistent cost pressures and supply snarls from the Iran conflict threaten to stall broader economic momentum.
### Order Growth Hits a Three-Year Low The Institute for Supply Management reported the services PMI dropped from 54.0 in March, missing Reuters economist estimates of 53.7. While a reading above 50 indicates expansion, the 7.1-point slide in new orders suggests demand is cooling. Business activity managed to tick up 2 points to 55.9 despite the broader slowdown.
