US: ISM non-manufacturing index likely to print 59.7 for March – Nomura

Analysts at Nomura point out that various business surveys point to continued expansion in activity in the US non-manufacturing sector in March, although some regional survey data moderated slightly.

Key Quotes

“Reflecting these data, we forecast 59.7 for the March ISM nonmanufacturing index (Consensus: 59.0). Although February’s ISM non-manufacturing index fell slightly from the previous month, details of the survey point to continued momentum. In particular, the new orders index increased 2.1pp to 64.8, while the index for backlogged orders came in at 56.0, up 5.5pp from 50.5. The strong readings for these indicators suggest momentum continued in March.”

“In addition, any comments from nonmanufacturing business respondents on trade tensions will be of interest. The March ISM manufacturing survey indicated that many industries expressed concerns over input prices and supply chains in response to the recent tariff announcement, although the majority of industries expressed continued business growth. Considering the recent changes to tax policies, we expect businesses to remain generally optimistic in the near term.”