The U.S. nonmanufacturing ISM continued to expand in March, and although the pace slowed a bit (-0.4 pts to 3-month low of 56.5), it was in-line with consensus and in-line with the average over the past twelve months. And, in an act of defiance after the nonfarm jobs report, the employment component picked up again, this time, up 0.2 pts to a 5-month high of 56.6. Thirteen industries reported more hiring in March, while mining and information reported a reduction in employment.
This is interesting and perhaps serves as a good reminder that one economic indicator cannot be taken as the be all and end all of activity.“Judging by the non-manufacturing ISM index, underlying U.S. economic momentum remains pretty decent and it looks like some of those temp factors weighing on Q1 should filter out in Q2.” – said BMO Capital Markets in a report on Monday
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