US ISM Non-Manufacturing Composite dropped to 52.5 in March, down from 57.3, but beat expectation of 48.0 and stayed in expansionary region. Looking at some details, business activity/production dropped -0.8 to 48.0. New orders dropped -10.2 to 52.9. Employment dropped -8.6 to 47.0.
Similar to ISM manufacturing, supplier deliveries jumped 9.7 to 62.1, holding the headline index up. Comments from respondents include: “Supplier capacity and shipping has been slowed due to the coronavirus” and “Global supply chain disruptions caused by COVID-19 concerns and the number of manufacturers reliant upon China for raw materials, parts and components.”
