US service sector expands in April, ISM index beats expectations at 51.6 per cent

The US services sector rebounded in April, exceeding expectations with an ISM index of 51.6 per cent, signaling expansion despite market volatility from tariffs. New orders and employment rose, but inflationary pressures intensified, reaching a high since January 2023. While some industries grew, others contracted, and federal budget cuts remained a concern.