Skip to Main Content

Article Attachment

The attached file contains this articles commentary as well as tables and charts of the data.

ISM Non Manufacturing: Weaker, Employment Drops

April 5, 2017
Bottom Line: The ISM survey of business activity in the services, construction, and government sectors of the economy fell more than expected in March. The employment component, a useful indicator when available before a non-farm payroll report, suggests some downside to the consensus forecasts for 175k new non-farm payrolls in February.

The ISM Non-Manufacturing Index FELL by 2.4 points in March to 55.2%, compared with market expectations for a larger decline to 57.0%. The March reading was slightly lower than its average level over the past 12 months. That said, the current level of the index indicates that the economy is growing moderately.

New Orders fell by -2.3 points to 58.9%. Order Backlogs declined slightly but. Inventories declined slightly.

Employment fell by 3.6 points to 51.6%, indicating that upcoming employment report will likely be lower than last month's print.

Prices fell by 4.2 points to 53.5%.