ISM services April 2022 chart
  • Prior was 58.3
  • Employment 49.5 vs 54.0 prior
  • New orders 54.6 vs 60.1 prior
  • Prices paid 84.6 vs 83.8 prior - record high
  • Business activity 59.1 vs 55.5 prior
  • Full report

This was the 23rd month in a row above 50. The rise in prices paid is another sign of inflation but there are some signs of slowing here, unlike in the service sector survey from S&P Global.

Comments in the report:

  • Pricing pressures and product availability issues continue to be extremely problematic.” [Accommodation & Food Services]
  • “Mortgage rates have skyrocketed. While relatively low from a historical perspective, the new rates — combined with historically high home prices — will temper new home demand at some point over the next 12 months.” [Construction]
  • “Large construction projects have been mostly constrained due to continued supply chain issues and large cost increases. Continued shortages in account management continue to be a source of frustration for day-to-day operations and service.” [Educational Services]
  • “Restrictions lifted as COVID-19 case volumes drop, allowing for more elective procedures and reduction in (average) length of stay. Freight costs are rising.” [Health Care & Social Assistance]
  • “Overall business has softened.” [Information]
  • “Business remains strong, only dampened by shortages in labor, increased material costs and lengthy lead times.” [Management of Companies & Support Services]
  • “Talent shortages continue to make it difficult to get work done at companies across many industry sectors. Light industrial labor is in high demand, but supply gaps still exist. Wages continue to rise in nearly all labor categories, contributing to the rise in prices of goods and services.” [Professional, Scientific & Technical Services]
  • “Inflation, supply chain issues and access to qualified workers continue to be issues. There are still lingering effects from the pandemic, although those seem to be subsiding. The future impacts of the war in Ukraine are unclear.” [Public Administration]
  • “Continued delays due to supply chain logistics issues; increased pricing across the board.” [Retail Trade]
  • “Fuel and chemicals continue to go up in price.” [Utilities]
  • “Cost pressures beginning to slow demand.” [Wholesale Trade]