ISM Shows Services Economy Growing At Slower Pace In March
The Institute for Supply Management is out with its latest report on the services economy. The non-manufacturing data for the month of March 2012 showed that economic activity in the non-manufacturing sector posted its 27th consecutive month of gains. The…
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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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
