ISM Shows Services Economy Growing At Slower Pace In March

Today’s report shows continued growth, albeit at a slower pace than the prior month.  The Business Activity Index was down 3.7 points to 58.9% in March; and the New Orders Index fell by 2.4 points to 58.8%; and the Employment Index was actually up 1 full point to 56.7%.

Inflation hawks may be losing some of the argument here as the Prices Index fell by 4.5 points down to 63.9%.  That is still higher in prices, but at a slower rate.  It is interesting that the report noted that there remains a concern about cost pressures and the instability of fuel prices.

The NMI reported that 16 non-manufacturing industries reported growth in March and the comments from the respondents remained mostly optimistic about business conditions with a higher confidence level of businesses and consumers.

JON C. OGG