The non-manufacturing business in America declined in April but the overall growth over 8 years still continues. According to the Institute of Supply Management, the value dropped by two points to 56.8 in April compared to the previous reading of 58.8 in March. Meanwhile, the results of 58.2 in April did not meet expectation based on the survey from Reuters. Seventeen companies stated concerns about its repercussions on their businesses. Trade tensions affect sales of steel and demand suppliers to send their “letter of concern” about the contracted purchases for the present year and later on following the proposed tariffs, according to someone from the construction industry. People are anxious about the sudden changes when it comes to the “international trade situation” as it shifts on a “minute-by-minute” basis, cited by a representative from the finance and insurance industry. The figure above 50 implies an expansion in the service sector over 50 while below this would mean a contraction. Yet the index of 17 companies under non-manufacturing sector expanded in the period of 99 consecutive months as shown on the reports of ISM.
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