For May
Latest Release Provided by: Institute of Supply Management

The services sector in may expanded, and the ISM index increased higher than expected. The sector has rebounded since the first quarter, where the index was below 50 for 3 months. The report comes along a line of better than expected data lately and bodes well for the economy.

For April
Provided by: Institute of Supply Management

US services grew in April, beating expectations of another month of contraction. The Dollar strengthened in a knee-jerk reaction to the news. The Business Activity/Production and New Orders subgauges decreased slightly, while Employment and Deliveries were up. Prices also continued increasing, climbing to 72.1 from March's 70.8. The report helps to bolster the case that the US economy is seeing some improved activity after the last two quarters saw the US face a sharp slowdown. The Federal Reserve policy makers have signaled that they will hold interest rates steady now at 2%. If economic data continues to surprise on the upside, then they will be able to carry out that intention.

The Services PMI showed back to back months of contraction and pressured the greenback, albeit an even lower forecast. The index rebounded slightly from January's reading, which was the lowest since 2001. As the largest component of the US economy, the services sector contraction coupled with manufacturing contraction adds new evidence that a recession is imminent.

For January - Released Early
Official Release from Institute of Supply Management

Business Activity Index: 41.9, pr. 54.4 (Dec)
New Orders Index: 43.5, pr. 53.5 (Dec), 51.1 (Nov)
Employment Index: 43.9, pr. 52.1 (Dec), pr. 50.8 (Nov)
Prices Index: 70.7, pr. 72.7 (Dec), pr. 76.5 (Nov)

From the Release:

"The new NMI (Non-Manufacturing Index) at 44.6 percent indicates contraction within the non-manufacturing sector for January 2008. Non-manufacturing business activity contracted for the first time since March 2003," Nieves said. He added, "The New Orders Index contracted to 43.5 percent, the lowest since October 2001. The Employment Index contracted to 43.9 percent, the lowest since February 2002. The Prices Index decreased to 70.7 percent in January, indicating a slight slowing in price increases for January. According to the new NMI, only three non-manufacturing industries reported growth in January. Members' comments in January indicate that weakness in the economy coupled with increased costs have negatively affected their business. Members have also indicated that they are experiencing inflationary pressures. The overall indication in January is that non-manufacturing has come to the end of a long-term period of growth and has contracted for the month of January."