U.S. April ISM Services, March Job Openings, New Home Sales - Economy growing moderately
The latest round of data provides no major net surprises, with a modest decline in job openings, two straight moderate increases in new home sales and a modest slowing in the ISM services index. The data is consistent with an economy still showing moderate growth.
April’s ISM services index of 53.6 is down from 54.0 in March and the lowest since November, but still comfortably positive.
New orders at 53.5 saw a significant slowing from March’s strong 60.6 which may hint at further slowing in the months ahead, but the other three components of the composite, delivery times, business activity and employment all showed improvement from March.
Prices paid were unchanged at 70.7, That the services prices paid index did not extend March’s acceleration in contrast to the manufacturing prices paid index is in part due to the services index earnings seasonally adjusted when the manufacturing prices paid index is not.
The JOLTS report showed a 126k decline in March, a second straight decline though still not reversing a sharp rise in January, leaving the 3-month average increasingly positive. Other details of the JOLTS report were positive, with a 655 rise in hirings exceeding a 356k rise in separations, with 125k of the latter coming from a rise in quits.
New home sales were released for February and March, February up by 8.9% to 635k and March up by 7.4% to 682k, both impressive at first glance but failing to fully erase a 19.9% decline in January, which was probably exaggerated by weather. Trend still has little direction.