In March 2025, the U.S. services sector experienced slower growth, with the ISM Nonmanufacturing PMI dropping to 50.8 from 53.5 in February, marking its lowest level since mid-2024.

This slowdown was primarily driven by a moderation in new orders, alongside a significant decline in employment, as the sub-index fell to 46.2 from 53.9—the lowest since December 2023.

However, output increased and deliveries improved as companies rushed to fulfill orders ahead of new tariffs.

The services sector

Cost pressures persisted, though the prices paid index eased slightly to 60.9 from 62.6, amid challenges in raising prices due to softening demand.

Meanwhile, the U.S. job market showed resilience, with initial jobless claims dropping to 219,000 for the week ending March 29, 2025, below the consensus forecast of 225,000.

This mixed data suggests a moderation in U.S. economic growth, with potential risks of further decline if demand weakens, though the job market remains stable for now. (Source: Midf)

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