WASHINGTON (Reuters) – U.S. service-sector activity reaccelerated in March after slowing the previous month to its lowest level in a year, but businesses continue to grapple with rising costs amid persistent tensions in the supply, shows Tuesday the monthly survey of the Institute for Supply Management (ISM).
The ISM index advanced to 58.3 in March from 56.5 in February, which was the weakest reading since February 2021. The rise in March ends three consecutive months of a slowdown in the index.
Economists polled by Reuters on average expected a figure up to 58.4, the 50 mark separating growth and contraction in activity.
The sub-index for new orders received by services companies also rebounded to 60.1 from 56.1 in February, which was a one-year low. That of employment is recovered to 54.0 after a first contraction since January 2021 to 48.5 indicated in February.
The sub-index of prices paid by companies rose to 83.8 after 83.1.
The war in Ukraine is increasing strains on global supply chains, driving up prices for commodities like oil and wheat.
(Report Lucia Mutikani; French version Claude Chendjou, edited by Sophie Louet)
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