New orders for services rose to their highest level in more than three years in March, the Institute for Supply Management reported Monday, as strong demand across the economy proved resilient to the spike in energy prices driven by the U.S.-Israel military campaign against Iran.
The ISM index for the services sector registered 54 percent, down from 56.1 percent in February but still comfortably in expansion territory for the 21st consecutive month. The slight pullback in the headline number masked what was arguably the most important signal in the report: the barometer of new order surged to its highest reading since February 2023.
The strength in new orders was reinforced by the gauge of backlogged orders, which remained in expansion territory for the second straight month, the first back-to-back expansion in backlogs since May 2024.
Thirteen of 16 services industries reported growth in March, led by wholesale trade,
Continue reading
Join the conversation!
Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!