It's no surprise that the ISM Non-Manufacturing Index posted better than expected gains

It's no surprise that the ISM Non-Manufacturing Index posted better than expected gains. The extent to which the index improved however, is very encouraging for the US service sector. The April level reached 55.2, a decent gain from the 53.1 reading in March and higher than the median estimate of 54. The biggest takeaways from the report are in regard to the Business Activity Index and the New Orders Index. Business Activity, which is a demand gauge, jumped 7.5% from March to 60.9. That's the strongest one-month increase in over 6 years. Meanwhile, New Orders climbed 4.8% to 58.2, representing the largest gain since March of 2010. Both numbers should aid in the growing confidence in service industries - which comprise 70% of the US economy. (VIEW LINK)