Services Sector Grows Faster in March

The services sector in March had its 50th consecutive month of improvement, according to the Institute for Supply Management's "Report on Business" released today. 

The Institute's nonmanufacturing index registered an overall 53.1% rating, up from February's 51.6% but below analyst expectations of 53.3%. An above-50 rating denotes growth, while less than 50 implies contraction.

Diving deeper into index components, business activity dropped off 1.2 percentage points to 53.4%, as several respondents noted the continued effect of February's rough weather on March's numbers. An arts, entertainment, and recreation respondent noted the "havoc" that cold weather played, while someone retail pointed to "harsh weather conditions."

Forward-looking indicators point to better times ahead. New orders advanced 2.1 percentage points to hit 53.4%, new export orders increased 2 points to 49.5%, and employment jumped 6.1 points to 53.6.%.  

Inventories dropped off 2.5 percentage points to 48% and order backlogs shaved off 0.5 points to clock in at 51.5%.

Thirteen services industries reported growth in March, led by agriculture, forestry, fishing, and hunting. Five industries reported contraction for March, with mining and educational services suffering the most sizable slumps.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2902090, ~/Articles/ArticleHandler.aspx, 9/4/2015 4:05:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Justin Loiseau

Energy and Macroeconomic Specialist keeping investors up to date with macro news, utilities, and good companies doing good things.

Today's Market

updated 6 hours ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes