The US services sector experienced a slowdown in April, with the Institute for Supply Management (ISM) reporting a services index of 53.6%, down 0.4 percentage points from March. The decline reflects ongoing cost pressures, particularly from rising energy prices due to the conflict in the Middle East, which has seen oil prices increase by over 60% since mid-February. The employment index also contracted for the second month, indicating challenges in hiring. Despite a slight uptick in business activity, the new orders index fell, suggesting a cautious outlook among businesses. ISM survey chair Steve Miller noted that the prices index remained high at 70.7%, the same as March, indicating persistent inflationary pressures. In the construction sector, rising interest rates and inflation are causing potential homebuyers to hesitate, with discounts and rate buy-downs becoming necessary to stimulate sales.