27 Apr 2015
US service sector growth rate in April eased from seven month high
FXStreet (Mumbai) - The flash US Markit services Purchasing Manager’s Index (PMI) came-in at 57.8, missing the estimate of 59.00. The PMI in February stands at 59.2.
The details reveal a strong increase in new work received by service providers, but the rate of expansion also eased since March. The service sector also witnessed a rise in employment, with the latest increase in payroll numbers was the steepest since June 2014.
Meanwhile, the latest increase in overall input prices was the most marked for six months, although input costs were subdued in comparison to the long-term average taken since 2009. The uptick in the input also translated into higher service charges. Moreover, the latest rise in average tariffs was the sharpest since September 2014.
As per Chris Williamson, chief economist at Markit, “The service sector enjoyed strong growth at the start of the second quarter, adding to evidence that the economy remains in good health. Although the pace of expansion slowed compared to March, April saw the second-largest rise in business activity for seven months. The improvement in second quarter economic growth, rising price pressures and strong job creation signalled by the PMI surveys adds to pressure on the FOMC to consider starting the process of normalising monetary policy sooner rather than later at its meeting later this week.”
The details reveal a strong increase in new work received by service providers, but the rate of expansion also eased since March. The service sector also witnessed a rise in employment, with the latest increase in payroll numbers was the steepest since June 2014.
Meanwhile, the latest increase in overall input prices was the most marked for six months, although input costs were subdued in comparison to the long-term average taken since 2009. The uptick in the input also translated into higher service charges. Moreover, the latest rise in average tariffs was the sharpest since September 2014.
As per Chris Williamson, chief economist at Markit, “The service sector enjoyed strong growth at the start of the second quarter, adding to evidence that the economy remains in good health. Although the pace of expansion slowed compared to March, April saw the second-largest rise in business activity for seven months. The improvement in second quarter economic growth, rising price pressures and strong job creation signalled by the PMI surveys adds to pressure on the FOMC to consider starting the process of normalising monetary policy sooner rather than later at its meeting later this week.”