US services sector activity slows in March with hiring softening, ISM says

(Sharecast News) - Services sector activity in the US slowed last month, resulting in a sharp decline in hiring, the results of a closely followed survey revealed. The Institute for Supply Management's services sector Purchasing Managers' Index retreated from a reading of 53.5 for February to 50.8 in March.

Economists had forecast a reading of 53.0.

A sub-index for output levels rose by 1.5 points from the month before to reach 55.9.

That for employment however dropped by 7.7 points to 46.2, whilst another linked to prices paid dipped by 1.7 points to 60.9.

A sub-index tracking new orders meanwhile dipped by 1.8 points to 50.4.

Purchasing managers from several sectors noted that activity was impacted in different ways by the anticipated changes in government policy and trade tariffs.

In Construction, a purchasing manager told ISM that the effects of tariffs on aluminium were starting to come through, whilst in Utilities price increases were expected in the near future because of tariffs on some commodity-based contracts.