Economic activity in the US services sector grew in March for the 22nd month in a row as the removal of Covid-19 restrictions increased demand and employment, according to a purchasing managers survey compiled by the Institute for Supply Management. The ISM Services PMI rose to 58.3 in March from 56.5 in the previous month, but was lower than the expected rise to 58.4 as rising costs, logistical challenges and supply strains persisted. Faster increases were seen for business activity (55.5 vs 55.1) and new orders (60.1 vs 56.1) while employment rebounded (54 vs 48.5). At the same time, price pressures intensified (83.8 vs 83.1). "Labor shortages have eased slightly, as COVID-19 cases have declined and public-health restrictions have been relaxed. Geopolitical concerns - particularly the Russia/Ukraine war, which has impacted material costs, most notably fuel and chemical prices - have created uncertainty for many businesses”, Anthony Nieves, Chair of the ISM said.
Services sector activity in the US strengthened in March despite rising prices and ongoing supply disruptions.Respondents once again marked fuel, energy and wage bills as the main factor behind rising inflation. Source: Bloomberg via ZeroHedge
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appToday's report is full of contrasts. Demand is rising supported by improving inventories and the recovery in the employment sub-index. Supply chain issues are diminishing slowly however this may not be enough to lower inflation especially taking into consideration that ongoing Russian aggression creates a lot of volatility on the global commodity markets. Also worsening the pandemic situation in China may create greater economic disruptions and boost inflation. Today’s report showed that rise in selling prices was the sharpest on record (since October 2009), while cost inflation approaches December's record high which may force companies to take “a cautious approach to planned capital expenditures.”
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
