ISM Services PMI declines below expectations

With the ISM Services PMI falling to 51.2 from 55.1 in February, economic activity in the US services sector grew at a slower rate in March. In comparison to the market forecast of 54.5, this number was weaker. After this news, the US Dollar Index continues within its daily range at about 101.50.

Price Paid sub-index, which represents inflation in the PMI survey, decreased slightly to 69.5 from 65.6 in February, while New Orders sub-index fell drastically to 52.2 from 60.4 and Employment sub-index decreased to 51.3 from 54.

Anthony Nieves, Chair of the ISM Services Business Survey Committee, commented on the data, stating that “there has been a pullback in the rate of growth for the services sector, attributed mainly to (1) a cooling off in the new orders growth rate, (2) an employment environment that varies by industry and (3) continued improvements in capacity and logistics, a positive impact on supplier performance.”