U.S. Services Sector Expands, Inflation Pressures Rise: April 2025 Report
Overview
The U.S. services sector, a cornerstone of the national economy, demonstrated unexpected resilience and expansion in April 2025. According to the Institute for Supply Management (ISM), the Services Purchasing Managers’ Index (PMI) rose to 51.6, surpassing both the previous month’s reading and economists’ expectations. This marks the tenth consecutive month of growth for the sector, which comprises more than two-thirds of U.S. economic activity. However, the report also revealed that inflationary pressures are intensifying, with the prices paid index reaching its highest level in over two years. This development is closely linked to recent trade policy changes and signals both strength and emerging risks for the broader economy.
