The Institute for Supply Management reported Wednesday that the U.S. non-manufacturing sector grew in April for the fourth consecutive month and at the same pace as March.
Most services industries included in the survey reported expanding business activities in April. Industries to report expansion include real estate and construction, which were hard hit by the current economic recession.
Industries that reported contracting activities include utilities, educational services, health care, and professional services.
Employment and backlog of orders in the overall services industry showed contraction. New orders, new export orders, prices and inventories showed expansion.
Despite the fourth consecutive month of growth for the industry, the optimism exhibited by surveyed firms are often tempered by economic concerns.
“There are signs of improvement which are leading us to be optimistic; however, as prices escalate the stability of the recovery is at risk,” said one firm in the retail trade industry.
“The market and other financial indicators point to an improving economy; however, that is being overshadowed by skepticism and lack of confidence. Capital spending is being constrained by concern over the economic view in a post-stimulus era, with double-digit interest rates and mounting debt,” said a firm in the education services industry.
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