ISM March US services index 58.3 vs 58.4 expected

• Prior was 56.4
• New orders 60.1 vs 56.1 prior
• Employment 54.0 vs 48.5 prior
• Prices paid 83.8 vs 83.1 prior
• Business activity 55.5 vs 55.1 prior
• Full report

This is another strong report. The rebound in employment and rise in new orders highlights a strong backdrop in the services sector, which is what you would expect coming out of the pandemic. This was the 22nd month in a row above 50.

Virtually all the comments highlight shortages:

• “Supply chain challenges continue at about the same levels as last month. Employment has improved as COVID-19 cases are declining. Restaurant sales have improved since Valentine’s Day, with mask and vaccine verification mandates being dropped.” [Accommodation & Food Services]
• “Grain and fertilizer prices are near all-time highs, resulting in decreased purchasing.” [Agriculture, Forestry, Fishing & Hunting]
• “Labor and inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term continue to push costs higher across the board for food and food-service supplies.” [Educational Services]
• “Pricing pressures are stronger than ever due to the Russia-Ukraine [war], and energy costs are skyrocketing.” [Construction]
• “Supply chain disruptions are still a problem due to reduced allocations and manufacturer back orders. Demand continues to outpace manufacturing capacity.” [Health Care & Social Assistance]
• “Energy costs are putting a pinch on all suppliers. We have received many surcharge notices.” [Information]
• “Concerns over inflation and rising energy prices are causing our company to take a cautious approach, especially related to planned capital expenditures.” [Management of Companies & Support Services]
• “Long lead times for electronic components are becoming normal and expected. Chemical deliveries are often delayed due to a lack of qualified hazardous materials drivers.” [Public Administration]
• “Global supply chain issues continue to disrupt chip supply, which is suppressing production of new vehicles.” [Retail Trade]
• “We are still seeing raw material subcomponent shortages, transportation delays and price increases.” [Utilities]
• “Constrained supply of many key product groups continues. Inflation worsening. Overall sales and profitability continue to be strong.” [Wholesale Trade]