Services sector sees continued growth in March, notes ISM

As was the case in February, March services economy activity saw a mild sequential decline while remaining on the right side of growth, according to the new edition of the Services ISM Report on Business, which was issued today by the Institute for Supply Management (ISM).

The Services PMI, at 51.5 (a reading of 50 or higher signals growth), fell 1.2% in March, while growing, at a slower rate, for the 15th consecutive month. This marks growth in 45 of the last 46 months, with December 2022 being the one month with a decline over that period. ISM added that the overall economy, like the March Services PMI, saw growth, at a slower rate, for the 15th consecutive month as well.

The March Services PMI reading is 1.0% below the 12-month average of 52.5, with August 2023’s 54.1 representing the high for that period and December 2023’s 50.5 marking the low for that period.

ISM reported that 12 services sectors it tracks saw gains in March, including: Accommodation & Food Services; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Educational Services; Construction; Management of Companies & Support Services; Utilities; Retail Trade; Wholesale Trade; Other Services; Finance & Insurance; and Health Care & Social Assistance. The three sectors seeing decreases included: Mining; Transportation & Warehousing; Real Estate, Rental & Leasing; and Information.

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