Updated: 03-Apr-24 10:20 ET

March ISM Non-Manufacturing Index

Updated: 03-Apr-24 10:20 ET

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