BREAKING: US100 loses after lower than expected and inflationary US ISM services data 📉

US ISM Services data showed a decline in March to 54, compared to 54.9 expected and 56.1 in February. The prices index rose to 70.7 the highest level since the inflation-driven environment of 2022.

• Employment ISM came in at 45.1 vs 51 exp. and 51.8 previously which means a significant weakness and huge monthly decline
• Prices paid index surget to 70.7 vs 67 exp. and 63 previously and it's clearly a sign of inflationary pressure
• New orders came in at 60.6 vs 56.8 anticipated and 58.6 previously - supported partially by the defense industry

Source: xStation5

US ISM Summary

• Services sector remained in expansion, with ISM Services PMI at 54.0 in March (vs. 56.1 prior), marking the 21st consecutive month of growth, though momentum softened.
• Business activity slowed sharply, with the index dropping to 53.9 (from 59.9), the lowest level since September 2025.
• New orders strengthened, rising to 60.6 (highest since February 2023), signaling continued demand resilience.
• Employment deteriorated significantly, falling to 45.2 (from 51.8), marking the first contraction in four months and the weakest level since December 2023.
• Inflation pressures intensified, with the Prices Index surging to 70.7 (highest since October 2022), driven by higher oil and fuel costs.
• Supplier deliveries slowed further (56.2), reflecting ongoing supply chain frictions, partly linked to geopolitical tensions and logistics disruptions.
• External trade showed improvement, with both exports and imports expanding for a second consecutive month.
• Broad-based growth persisted, with 13 out of 16 industries expanding, although fewer than in the previous month.
• Geopolitical factors—particularly the Iran conflict—are increasingly impacting business conditions, contributing to higher input costs and precautionary inventory builds.
• Overall takeaway: the services sector remains resilient, but the mix of rising inflation, weakening employment, and slowing activity points to a more fragile macro backdrop.