Updated: 06-Apr-26 10:23 ET
Highlights
- The ISM Services PMI hit 54.0% in March (Briefing.com consensus 54.9%), down from 56.1% in February.
- The dividing line between expansion and contraction is 50.0%, so the March reading reflects services sector activity growing at a slower pace than the prior month, when activity expanded at a pace not seen since July 2022.
- The Business Activity/Production Index decreased to 53.9% from 59.9%.
- The New Orders Index rose to 60.6% from 58.6%.
- The Employment Index fell to 45.2% from 51.8%.
- The Prices Index jumped to 70.7% from 63.0%, making for the sixteenth consecutive month above 60.0%.
- The Supplier Deliveries Index rose to 56.2% from 53.9%.
- The Backlog of Orders Index fell to 53.6% from 55.9%.
- The key takeaway from the report is that the services sector remained in expansion, but the Employment Index returned to contraction while the Prices Index saw its biggest one-month increase in over 13 years. This combination will present a headwind to growth, especially if it persists in the coming months.
| Category | MAR | FEB | JAN | DEC | NOV |
| Non-Manufacturing ISM index | 54.0 | 56.1 | 53.8 | 53.8 | 52.4 |
| Business Activity | 53.9 | 59.9 | 57.4 | 55.2 | 54.5 |
| New Orders | 60.6 | 58.6 | 53.1 | 56.5 | 52.9 |
| Employment | 45.2 | 51.8 | 50.3 | 51.7 | 48.9 |
| Deliveries (nsa) | 56.2 | 53.9 | 54.2 | 51.8 | 54.1 |
| Inventories (nsa) | 54.8 | 56.4 | 45.1 | 54.2 | 53.4 |
| Exports (nsa) | 50.7 | 57.2 | 45.0 | 54.2 | 48.7 |
| Imports (nsa) | 55.2 | 51.8 | 48.2 | 50.3 | 48.9 |
| Prices Paid | 70.7 | 63.0 | 66.6 | 65.1 | 65.4 |
