ISM Services Index Improves in April

The U.S. economy’s service sector rate of contraction slowed last month, the Institute for Supply Management said Tuesday.

ISM’s monthly services index rose to a reading of 43.8 from 40.8 in March, the group said in its monthly report.

Figures of more than 50 indicate expansion, while below that shows contraction. Economists had forecast a reading of 42.2, Bloomberg reported.

The index measures non-manufacturing components of the economy, and the services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.