Economic activity in the non-manufacturing sector grew in March for the 110th consecutive month, according to the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report on Business.
Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee, commented, “The NMI registered 56.1%, which is 3.6 percentage points lower than the February reading of 59.7%. This represents continued growth in the non-manufacturing sector, at a slower rate. The Non-Manufacturing Business Activity Index decreased to 57.4%, 7.3 percentage points lower than the February reading of 64.7%, reflecting growth for the 116th consecutive month, at a slower rate in March. The New Orders Index registered 59%, 6.2 percentage points lower than the reading of 65.2% in February. The Employment Index increased 0.7 percentage point in March to 55.9% from the February reading of 55.2%. The Prices Index increased 4.3 percentage points from the February reading of 54.4% to 58.7%, indicating that prices increased in March for the 22nd consecutive month.
“According to the NMI, 16 non-manufacturing industries reported growth. The non-manufacturing sector’s growth cooled off in March after strong growth in February. Respondents remain mostly optimistic about overall business conditions and the economy. They still have underlying concerns about employment resources and capacity constraints.”
The 16 non-manufacturing industries reporting growth in March — listed in order — are:
The two industries that contracted in March are:
An NMI above 48.6%, over time, generally indicates an expansion of the overall economy. Therefore, the March NMI indicates growth for the 116th consecutive month in the overall economy and expansion in the non-manufacturing sector for the 110th consecutive month.
Nieves said, “The past relationship between the NMI and the overall economy indicates that the NMI for March (56.1%) corresponds to a 2.6% increase in real gross domestic product (GDP) on an annualized basis.”
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