US services grow at slowest pace in 9 months: ISM

Market: Crude oil, Metals
03/04/25

The US services sector expanded in March at the slowest pace since last June, with orders, export orders and employment sliding into contraction, as companies braced for tariffs threatened by the US administration.

The headline purchasing managers' index (PMI) slowed to 50.8 in March from 53.5 the prior month, according to the Institute for Supply Management's (ISM) latest survey on activity in the biggest part of the economy. New orders slowed to 50.4 from 52.2, and employment fell to 46.2, showing contraction, from 53.9 the prior month. The breakeven threshold between growth and contraction is 50.

New export orders fell to 45.8 in March from 52.1 the prior month. Imports rose to 52.6 from 49.6.

The weakening services gauge follows ISM's manufacturing PMI, reported on 1 April, that showed factory activity fell to 49 in March, the first contraction in three months, which followed more than two years of contraction. The Federal Reserve Bank of Atlanta's GDPNOW tracker on Thursday forecast a 2.8pc annual contraction in US gross domestic product in the first quarter, which will be reported at the end of April.

Services business activity/production grew to 55.9 last month from 54.4 the prior month. The price index fell to 60.9 from 62.6, showing slowing price growth.

By Bob Willis

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