The Institute for Supply Management’s services index, a bellwether of business conditions at U.S. companies, fell to a three-month low of 51.2 in March and signaled slackening growth as strains mount on the economy. Numbers above 50 indicate companies are expanding.
Economists polled by The Wall Street Journal had expected the index to drop to 54.3.
The closely followed ISM reports are the first major indicators of each month to offer clues on how well the economy is performing. While the large service side of the economy is still growing, manufacturers have fallen into a slump of sorts.
Source: MarketWatch, ISM