The ISM Non-Manufacturing Index for March increased to 58.3% (consensus 58.5%) from 56.5% in February. The dividing line between expansion and contraction is 50.0%. The March reading marks the 22nd straight month of growth for the services sector, with some acceleration from the prior month.
The key takeaway from the report is that business activity for the non-manufacturing sector picked up in March following an Omicron-related slowdown in February; however, respondents continue to bemoan supply chain constraints and elevated cost pressures.
The New Orders Index rose to 60.1% from 56.1%.
The Production Index moved to 55.5% from 55.1%.
The Prices Index increased to 83.8% from 83.1%, hitting its second-highest reading ever.
The Employment Index rose to 54.0% from 48.5%.
The Supplier Deliveries Index dropped to 63.4% from 66.2%.
The Backlog of Orders Index edged up to 64.5% from 64.2%.