US service sector growth remains steady in April
Business activity in the US service sector remained steady throughout April, data released on Monday showed.
The seasonally adjusted Markit Flash US Services PMI business activity index declined from 59.2 to 57.8 in April, but remained well above the 50.0 threshold that signals expansion and indicated a faster pace of expansion than the average seen since survey began in 2009.
Meanwhile, the seasonally adjusted Markit Flash US composite PMI output index declined 59.2 to 57.4 in April, but remained well above the post-crisis average of 55.9.
According to the survey, service sector output grew at a faster rate than the manufacturing sector in April, with the former recording a 57.8 reading and the latter posting a 55.4 reading.
The latest figures pointed towards the sharpest increase in US private sector payroll number since June 2014, driven by a solid job creation this month.
“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,” said Markit’s chief economist Chris Williamson.