[ForexNews]

The ISM non-manufacturing index increased to 43.7 in April from 40.8 in March, above consensus (42.2) expectations. This is the highest reading since October. Three of the four components of the overall index moved higher in April: new orders jumped to 47.0 from 38.8, employment bounced to 37.0 from 32.3, and the business activity index increased to 45.2 from 44.1. The fact that the improvement in the headline index is led by new orders is encouraging, since that component tends to lead overall growth. The only component of the overall index to decline was the supplier delivery index, which fell to a new record low of 45.5 from 48.0 (the series goes back to 1997); a decline in this index indicates a faster pace of deliveries. The prices index increased modestly to 40.0 from 39.1. Overall this report reflects a service sector which, along with manufacturing, seems close to a bottom.