| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Composite Index | 53.5 | 51.6 | ||
| Services Index | 54.4 | 51.0 | 54.3 | 54.3 to 54.3 |
Highlights
The services index edged up to 54.4 from 54.3 in the flash for March, slightly better than the unrevised 53.3 figure in the Econoday consensus, and up nicely from 51.0 in February, and the highest in 2025 so far. The composite was unrevised at 53.5, which matched expectations, up from 51.6 in February.
The figures show ongoing solid growth in the private sector. The uptick in services reflects strength in new orders. A worrisome aspect in the report: intensifying price pressures. S&P said input costs rose at the fastest rate in nearly two years and this prompted prices received to rise"solidly."
The report said for services:"worries over the impact of federal government policies, especially in relation to tariffs, meant confidence in the outlook fell to its second lowest since the end of 2022."
The figures show ongoing solid growth in the private sector. The uptick in services reflects strength in new orders. A worrisome aspect in the report: intensifying price pressures. S&P said input costs rose at the fastest rate in nearly two years and this prompted prices received to rise"solidly."
The report said for services:"worries over the impact of federal government policies, especially in relation to tariffs, meant confidence in the outlook fell to its second lowest since the end of 2022."
Market Consensus Before Announcement
The services index is seen unrevised from 54.3 in the flash.
Definition
US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.
Description
Investors need to keep their fingers on the pulse of the economy because it indicates how various types of investments will perform. The Markit Services PMI provides advance insight into the services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of various markets. The stock market likes to see healthy economic growth which generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.
The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.
The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.
