The ISM Services Index increased by 1.8 points to a reading of 58.3 in March, its first gain in four months. While the Index remains well below its November high, it is not in danger of falling into contraction (readings below 50.0) at this time. However, there was still reason for concern within the report as the Prices Paid Index (bottom graph) reached the second highest level on record, just 0.1 point below its all-time from December. As stated by the Institute for Supply Management: “There was an uptick in business activity in March, but respondents have indicated that they continue to be impacted by capacity constraints, logistical challenges and inflation.”
