US services PMI grows at slowest pace in 9 months in March

The US services sector grew at its slowest pace in nine months in March, underpinning expectations of a slower economic growth in Q1 2025 amid uncertainty about US President Donald Trump's latest tariffs.

According to data issued by the Institute for Supply Management (ISM) today, April 3, the services PMI registered 50.8 points in March, down from 53.5 points in February, against forecasts for a 53-point decline.

Despite this pullback, the index remained above the neutral 50-point mark that separates growth from contraction on a monthly basis.

The new orders sub-index registered 50.4 points in March, declining from 52.2 points in February. Meanwhile, the employment sub-index fell to 46.2 points — its lowest level since December 2023, against 53.9 points in February.

The input prices sub-index also tumbled to 60.9 points, versus 62.6 points in February, with the supplier delivery sub-index down to 50.6 points.

The final reading of the S&P Global survey showed that the services’ PMI rose to 54.4 in March, marking the highest level since the beginning of the year.