March ISM services 50.8 vs 53.0 expected

• Prior was 53.5

Data:

• Employment 46.2 vs 53.9 prior
• New orders 50.4 vs 52.2 prior
• Prices paid 60.9 vs 62.6 prior
• Business activity 55.9 vs 54.4 prior
• Supplier deliveries 50.6 vs 53.4 prior
• Inventories 50.3 vs 50.6 prior
• Backlog of orders 47.4 vs 51.7 prior
• New export orders 45.8 vs 52.1 prior
• Imports 52.6 vs 49.6 prior
• Inventory sentiment 56.6 vs 54.7 prior

Comments in the report:

• “Restaurant sales and traffic have improved in the past month
  overall. Valentine’s Day typically starts an improved seasonal trend
  that was consistent this year. We remain optimistic about the coming
  months, despite recent news of possible recession and tariffs that have
  not played out yet.” [Accommodation & Food Services]
• “Starting to see effect of aluminum tariff. These costs will be passed on to customers.” [Construction]
• “Patient volumes continue to exceed forecast, leading to increased
  revenues and an improved financial outlook. Supply chains continue to
  operate effectively and few categories — including IV solutions — are
  showing signs of duress. Labor outlook is improving, with reliance on
  travel staff continuing to recede. Outlook for the duration of the
  quarter is favorable.” [Health Care & Social Assistance]
• “The tariffs have caused issues in the groundwood paper market
  especially. With a large amount of groundwood imported from Canada to
  the U.S., the tariffs and resulting delays have caused havoc with the
  supply chain and deliveries. U.S. mills are getting backlogged and late
  from the additional tonnage they’ve taken on.” [Information]
• “New equipment purchases have slowed down over the last month due to
  the uncertainty of the new administration and cancellation of certain
  aspects of the Inflation Reduction Act.” [Other Services]
• “We are seeing some loosening in the U.S. economy related to hiring
  and people retention. Quality candidates are available, and employee
  turnover is decreasing. Competitive pressure for goods and services is
  increasing as suppliers seek organic increases in revenue.”
  [Professional, Scientific & Technical Services]
• “Government budget cuts and layoffs are negatively impacting our operations.” [Public Administration]
• “We are still holding back some money for emergency use in case the
  new administration targets grant usage and puts a hold on current
  spending.” [Transportation & Warehousing]
• “We’re expecting price increases in the near future due to tariffs
  on several commodity-based contracts, including waterworks items.”
  [Utilities]
• “Tariff confusion and the variety of ways that suppliers are
  responding have had a strong effect on our purchasing decisions this
  month, causing us to shift spend and in some cases buy in advance of
  reported tariffs.” [Wholesale Trade]

This article was written by Adam Button at www.forexlive.com.