10:10 AM EDT, 05/03/2024 (MT Newswires) -- The Institute for Supply Management's US services index fell to a reading of 49.4 in April from 51.4 in March, compared with expectations for an increase to a reading of 52.0 in a survey compiled by Bloomberg s of 7:25 am ET.

The index indicates contraction, which is in line with the Philadelphia, Richmond and Dallas Fed readings but in contrast with the Kansas City and the S&P Global indexes that suggested expansion.

There were declines in the readings for production, new orders and employment, though production and new orders remained above breakeven point. The reading for prices increased.

The monthly national services reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US services sector and would be a positive for service-sector stocks. Rising prices would normally be a negative for both stocks and bonds.