U.S. services sector growth slows by more than expected in March
Investing.com | Author Scott Kanowsky
Published Apr 05, 2023 10:55AM ET
Updated Apr 05, 2023 11:05AM ET
By Scott Kanowsky
Investing.com -- Growth in business activity in the services sector in the U.S. slowed by more than expected in March, while price pressures showed signs of easing and the pace of new orders plunged.
The closely watched ISM non-manufacturing sector index for March dipped to 51.2 for the month, down from a previous reading of 55.1 in February and 55.2 in January. The figure was still above the 50-point mark that denotes expansion from contraction, but below economists' projections of 54.5.
"There has been a pullback in the rate of growth for the services sector," said ISM chair Anthony Nieves in a statement.
The prices paid for inputs slipped to 59.5 - its lowest level since 2020 - from 65.6 in the prior month.
Meanwhile, the ISM's gauge of new orders received by services businesses, which make up a majority of the economy, fell sharply to 52.2 from 62.6 in February but managed to avoid contraction.
Out of the 13 industries included in the survey, some respondents noted that while sales remained healthy, they were still concerned about an uncertain economic outlook.
Interest rates have risen following a recent period of aggressive Federal Reserve monetary policy tightening aimed at cooling down red-hot inflation. The trend has helped shift spending away from goods, which are typically purchased on credit. However, worries persist that the Fed's moves may eventually tip the world's largest economy into a recession .
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.