US Services Growth Lowest since 2017: ISM


The ISM Non-Manufacturing PMI index for the United States slumped to 56.1 in March of 2019 from 59.7 in February, below market expectations of 58. The reading pointed to the weakest expansion in the services sector since August of 2017, amid a slowdown in production and new orders. Respondents remain mostly optimistic about overall business conditions and the economy but concerns remain about employment resources and capacity constraints.

Slower increases were seen in business activity/production (57.4 from 64.7 in February), new orders (59 from 65.2), supplier deliveries (52 from 53.5) and new export orders (52.5 from 55). Also, inventories stalled (50 from 51) and price pressures intensified (58.7 from 54.4). On the other hand, employment (55.9 from 55.2) and backlogs of orders (56.5 from 55.5) rose faster.  

The 16 non-manufacturing industries reporting growth in March — listed in order — are: Construction; Other Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; Accommodation & Food Services; Public Administration; Mining; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Real Estate, Rental & Leasing; Information; Arts, Entertainment & Recreation; Utilities; Finance & Insurance; and Wholesale Trade. The two industries that contracted in March are: Educational Services; and Retail Trade.

 US Services Growth Lowest since 2017: ISM


ISM | Joana Taborda | joana.taborda@tradingeconomics.com
4/3/2019 2:20:35 PM