Updated: 03-Apr-24 10:20 ET
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Updated: 03-Apr-24 10:20 ET |
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Highlights
- The ISM Non-Manufacturing PMI decreased to 51.4% in March (Briefing.com consensus 52.6%) from 52.6% in February.
- The dividing line between expansion and contraction is 50.0%, so the March reading reflects services sector activity expanding at slower pace from February.
- March marked the 15th consecutive month of growth in the services sector.
Key Factors
- The Business Activity/Production Index rose to 57.4% from 57.2%.
- The New Orders Index dropped to 54.4% from 56.1%.
- The Employment Index bumped up to 48.5% from 48.0%.
- The Prices Index fell to 53.4% from 58.6%, which is the lowest reading since March 2020.
- The Suppliers Deliveries Index decreased to 45.4% from 48.9% (a reading below 50% for this series connotes a faster delivery performance, which typically meshes with decreased demand).
- The Backlog of Orders Index fell to 44.8% from 50.3%.
Big Picture
- The key takeaway from the report is the recognition that the expansion in the services sector -- the largest swath of the U.S. economy -- slowed in March, substantiated by a slowdown in the pace of increase in prices and new orders.
Category |
MAR |
FEB |
JAN |
DEC |
NOV |
Non-Manufacturing ISM index |
51.4 |
52.6 |
53.4 |
50.5 |
52.7 |
Business Activity |
57.4 |
57.2 |
55.8 |
55.8 |
55.1 |
New Orders |
54.4 |
56.1 |
55.0 |
52.8 |
55.5 |
Employment |
48.5 |
48.0 |
50.5 |
43.8 |
50.7 |
Deliveries (nsa) |
45.4 |
48.9 |
52.4 |
49.5 |
49.6 |
Inventories (nsa) |
45.6 |
47.1 |
49.1 |
49.6 |
55.4 |
Exports (nsa) |
52.7 |
51.6 |
56.1 |
50.4 |
53.6 |
Imports (nsa) |
52.4 |
54.3 |
59.9 |
49.3 |
53.7 |
Prices Paid |
53.4 |
58.6 |
64.0 |
56.7 |
58.3 |