US ISM Services Slows, But Price Rises Remain in Focus
The Institute for Supply Management (ISM) US services index released on Monday (April 6) fell to 54.0 in March from 56.1 in February, weaker than expectations for a decline to 54.9. A reading above 50 still indicates expansion, but the pace of growth is slowing, in line with previously released regional services data that had shown mixed signals.
In detail, the production, employment, and backlog components weakened, while new orders and prices strengthened. This combination suggests activity is still growing, but operational momentum is cooling, with cost pressures not yet fully abating.
For the market, a headline reading remaining above 50 is generally supportive of service sector stocks, but a rise in the price component could be a drag on stocks and bonds by prolonging inflation concerns. The next focus will be whether this price strengthening is temporary or leads to more persistent service inflation pressures.
Source: Newsmaker.id
