PiCK
US March ISM Services PMI Misses Expectations…Employment Slows, Price Pressures Intensify
Summary
- The US March ISM Services PMI came in at 54.0, missing both the forecast and the prior month’s reading.
- The services employment index fell to 45.2%, moving into contraction territory for the first time in four months.
- The prices index rose to 70.7%, the highest level since 2022, with higher oil prices, Middle East tensions, and logistics disruptions being reflected as cost pressures.
Forecast Trend Report by Period
The US March ISM Services Purchasing Managers’ Index (PMI) came in below expectations.
According to the Services PMI report released on the 6th (local time) by the Institute for Supply Management (ISM), the US March Services PMI was 54.0, below both the forecast (54.8) and the prior month’s reading (56.1).
Steve Miller, chair of ISM’s Services Business Survey Committee, said, “The March Services PMI came in at 54%, extending the expansion for a 21st consecutive month, but it declined from the previous month,” adding, “The business activity index remained in expansion but fell to its lowest level in some time, and the employment index dropped to 45.2%, moving into contraction territory for the first time in four months.”
He continued, “New orders increased and showed a resilient trend, but the prices index rose to 70.7%, the highest level since 2022,” and explained that “higher oil prices, Middle East tensions, and logistics disruptions are being reflected as cost pressures.”
Meanwhile, ISM calculates the PMI by conducting monthly surveys assessing manufacturing conditions across 400 companies in 20 industries. A reading above 50 indicates more respondents expect expansion, while a reading below 50 indicates more respondents expect contraction.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
