US ISM April services index 51.9 vs 51.8 expected

• Prior was 51.2
• employment index 50.8 versus 51.3 prior
• new orders index 56.1 versus 52.2 expected
• prices paid index 59.6 versus 59.5 prior
• new export orders 60.9 versus 43.7 last month
• imports 51.3 versus 43.6 last month
• backlog of orders 49.7 versus 48.5 last month
• inventories 47.2 versus 52.8 last month
• supplier deliveries 48.6 versus 45.8 last month
• inventory sentiment 48.9 versus 57.9 last month

There’s a big jump in import and export orders in this report along with new orders but the overall message is modest, and certainly softer than the PMI from S&P Global.

Comments in the report:

• “Lead times are improving. Suppliers are struggling with how to
  position themselves with pricing; those keeping prices higher despite a
  drop in input costs are at risk of losing their business to those that
  are willing to adjust prices in line with lower input costs.”
  [Accommodation & Food Services]
• “High mortgage rates continue to weigh on new residential
  construction. With demand down, material suppliers are curtailing
  production to maintain pricing levels. Labor continues to be
  constrained, but some negotiation room is developing as the slowdown
  drags on.” [Construction]
• “At the beginning of the second quarter, business conditions are
  steady, and we’re preparing for planned expansion in the third quarter.
  Watching the economy and overall market forecasts and trends.” [Finance
  & Insurance]
• “We continue to see strong patient volumes and revenue performance,
  though inflationary pressures and labor shortages still persist. Supply
  chain performance is improving, but there are still some major
  medical/surgical equipment suppliers who seem to be stuck in a perpetual
  back-ordered state with forecasted ‘get well’ dates well into May.
  Overall, we expect to see gradual improvement in the next quarter.”
  [Health Care & Social Assistance]
• “Inflation concerns has our company maintaining a cautious approach
  to the future.” [Management of Companies & Support Services]
• “We are well on track to still see significant growth in production
  through calendar year 2023, as well as 2024 and 2025. We are seeing
  significant increases in order backlogs and inventory on hand to support
  the increased production, as well as several attempts to increase
  employment levels needed to support (forecasted) production increases.”
  [Professional, Scientific & Technical Services]
• “Lead times on construction equipment and steel are still long,
  especially for HVAC (heating, ventilation and air conditioning)
  equipment and generators.” [Public Administration]
• “Retail environment is lower year over year, but trends are stable
  year to date. Inventory levels are coming more in line to match the new
  lower demand trends.” [Retail Trade]
• “Material prices continue to decline — except for energy and
  chemicals — but are still above pre-pandemic levels. inflation and
  recession uncertainties still weigh on decisions.” [Utilities]
• “Prices are coming down, but the decreases are small and not
  materially close to 2019 pricing. Labor in general is still and issue.”
  [Transportation & Warehousing]
• “Business activity remains relatively flat compared to last month.
  Inventories are much more balanced versus demand, and supply chains are
  near full recovery. Optimistic about demand and business activity in
  later spring and summer months.” [Wholesale Trade]

/US dollar