Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
  The ISM Non-Manufacturing Index Rose to 54.5 in March
Posted Under: Data Watch • ISM Non-Manufacturing


Implications:  Service sector activity followed the manufacturing sector higher in March, with all major measures showing gains.  Of the eighteen industries that the ISM surveys, twelve reported growth in March, while only two reported contraction.  Service sector activity has now grown for 74 consecutive months, and acceleration in new orders and business activity show positive signs for the months ahead.  While service sector growth has slowed modestly from the average reading of 57.1 in 2015, the 53.8 average in Q1 is nothing to scoff at.  The business activity index has fully recovered from a January dip, rising to a robust 59.8 in March, above the average level seen over the past three, six, and twelve month periods.  The new orders index, a signal of how business activity and employment are likely to move in coming months to fill demand, rose to healthy 56.7 in March.  Taken together, these two indicators suggest service sector growth should continue in the coming months.  After falling into contraction territory in February, the employment index rose back above 50 in March, in line with the employment gains we saw in last Friday's payrolls report.  On the inflation front, the prices paid index moved higher to 49.1 in March from 45.5 in February, with respondents citing rising fuel and beef prices.  In sum, steady growth from the service sector, paired with positive trends in employment, earnings, and home building, keep the plow horse economy plodding forward. 

Click here for PDF version

Posted on Tuesday, April 5, 2016 @ 2:03 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.