US services sector activity strengthens in April, S&P Global says

America's services sector strengthened last month, roughly as expected, the results of a survey revealed.

S&P Global's services sector Purchasing Managers' Index improved from a reading of 52.6 for March to 53.6 in April.

Economists had penciled-in a reading of 53.7.

A sub-index tracking firms' new orders registered its sharpest rate of growth for nearly a year, alongside an acceleration both in the rate of output growth and in that for employment.

Companies were also more positive when it came to the outlook for their levels of output over the year ahead, the survey compiler said.

Commenting on the PMI results, Chris Williamson, chief business economist at S&P Global Market Intelligence: "April saw an encouraging acceleration of service sector growth which, combined with indications of a renewed upturn in manufacturing, suggests the economy has regained some momentum at the start of the second quarter.

"[...] Much of course depends on whether this recovery in demand can persist. Headwinds from higher interest rates and the increased costs of living, combined with the winding down of household savings, suggest the upturn could lose steam in the months ahead."