Service Industries Continue To Expand in April

New York, NY, May 4, 2011 -- Service industries in the U.S. expanded less than expected in April, according to the Institute for Supply Management.

The institute's index of non-manufacturing companies declined to 52.8 last month from 57.3 in March. Readings over 50 indicate growth, and 57.5 was the median forecast of economists.

The ISM’s measure of new orders at service providers decreased to 52.7, the lowest since December 2009, from 64.1 in March, while a measure of business activity, which reflects sentiment among purchasers, fell to 53.7 from 59.7 in March.

The group’s employment gauge dropped to 51.9 from 53.7 a month earlier.