- 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 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]