Economic activity in US services sector expands in March, but at a slower pace

The US services sector continued to expand in March according to the Institute of Supply Management’s (ISM) Services PMI report, however, this increase was only slight compared to the rate in February. With a reading of 51.2%, the figure still indicates growth in the services sector. Anthony Nieves, chair of the ISM’s Services Business Survey Committee, declared that this was the third consecutive month of expansion, after a contraction in December with a reading of 49.2%.

The Employment Index, which forms part of the Services PMI, also decelerated from 54% in February to 51.3% in March. Survey respondents reported difficulty “maintaining current positions” and “hiring full-time employees to support business activities”. The report is based on data obtained from purchasing and supply executives from across the United States.