ISM non-manufacturing composite dropped to 58.8 in March, down from 59.5 slightly below expectation of 59.0. Sub components are mixed with improvements seen in employment, suppliers deliveries prices, backlog of orders and imports. Deteriorations are seen in business activity, new orders, new export orders and inventory sentiment.
Here are some quotes from responents:
- “The unbelievable amount of market volatility in construction-related materials that started with lumber continues with the tariffs on steel and aluminum. Accurate, long-term planning has become incredibly difficult, as distributors that historically held costs for at least 30 days are now, in some cases, committing to only seven days, as prices can change drastically in that time.” (Construction)
- “Interest rate hike [and] tariffs are likely to impact cost and price of goods and services.” (Finance & Insurance)
- “Still feeling effects of plants in Puerto Rico being down, or not back to full capacity of IV solutions and plastic tubing sets.” (Health Care & Social Assistance)
- “Business is stronger than forecast in March. Strategic sales continue to exceed forecast in March, as they have all quarter.” (Management of Companies & Support Services)
- “Increased level of activity and pricing overall.” (Mining)
- “As the first quarter end approaches, business outlook is steady, but not nearing growth forecast in Q4 2017.” (Professional, Scientific & Technical Services)
- “Housing market [is] still strong, despite a shortage of construction workers.” (Public Administration)
- “Q1 was positive, despite weather conditions that affected operations on the East Coast. The outlook remains positive going into Q2.” (Transportation & Warehousing)
- “Overall, business has been slower than [the] previous quarter; however, we expect it to increase in the second quarter of 2018.” (Wholesale Trade)
