U.S. March Services Price Index Soars to Highest Since October 2022

Odaily News According to data released on Monday, the U.S. services economy expanded at a slower pace in March, with employment declining at the fastest rate since 2023 and input prices rising sharply. The Institute for Supply Management (ISM) Services Price Index climbed to 70.7, the highest level since October 2022, marking a 7.7 percentage point increase from the previous month and the largest gain in nearly 14 years. The overall ISM Services Index fell by 2.1 percentage points to 54, primarily due to weak employment and slower growth in business activity.

Affected by the war in Iran, energy and other input costs have risen significantly, putting pressure on businesses. The Services Employment Index dropped by 6.6 percentage points to 45.2, one of the largest monthly declines since the COVID-19 pandemic. The Business Activity Index fell by 6 percentage points to 53.9, the largest drop since mid-2024. The Supplier Deliveries Index rose to its highest level since October 2024. New orders for service providers grew at the strongest pace in over three years. (Jin10)