U.S. Services Sector Expansion Continues Amid Slowing Momentum and Rising Cost Pressure

Note: This section contains information in English only.
Source: Dukascopy Bank SA
March 2026 ISM Services PMI report shows that the U.S. services sector continues to expand, marking its 21st consecutive month of growth with a reading of 54%, although momentum has slowed compared to February. Overall economic expansion has now reached 70 straight months, but the decline in the headline index reflects mixed conditions across the sector.

Demand remains strong, as evidenced by a rise in the New Orders Index to its highest level since early 2023. However, business activity has moderated, indicating that companies are not increasing output at the same pace as incoming demand. At the same time, global trade activity continues to expand modestly.



A key concern in March was a sharp surge in costs, with the Prices Index posting its largest monthly increase in over a decade. This rise has been driven largely by geopolitical tensions involving Iran, which have disrupted shipping routes, increased fuel prices, and added supply chain friction. Businesses are also facing higher input costs for raw materials and ongoing shortages of components and skilled labor, alongside slower supplier deliveries.

Despite strong demand, employment declined unexpectedly, suggesting that companies are becoming more cautious. Firms appear to be focusing on cost control and operational efficiency, while also dealing with labor availability challenges.

Overall, most industries continued to grow, led by wholesale trade, corporate services, and finance, though a few sectors including retail and agriculture experienced contraction. The report highlights a resilient but increasingly pressured services economy, where strong demand is being offset by rising costs, supply constraints, and cautious hiring.
Back to articles

Actual Topics

Wed, 08 Apr 2026 14:34:25 GMT

Trump's Ceasefire May Lower Gas Prices, But a New Inflation Wave Looms

When President Trump announced a surprise two-week ceasefire with Iran late Tuesday evening, averting military strikes and paving the way for the Strait of Hormuz to reopen, Wall Street reacted with immediate and violent relief. Crude oil decreased nearly fifteen percent overnight, erasing weeks of built-up war premiums in a matter of hours. For traders staring at the charts, the

Wed, 01 Apr 2026 14:12:14 GMT

U.S. Manufacturing Expands in March as Costs and Global Risks Rise

The March 2026 ISM Manufacturing PMI report shows that U.S. manufacturing is still growing, marking its third straight month of expansion with a PMI of 52.7%. This also reflects a broader economic expansion that has now lasted 17 months, with GDP growing at about 1.8% annually. The growth is mainly coming from higher production and steady new orders. Production has been

Tue, 31 Mar 2026 07:44:21 GMT

UK Economy Inches Forward in Q4 as Production Surge Offsets Construction Slump

The UK economy grew by an unrevised 0.1% in Q4 2025, bringing total annual growth for the year to 1.4%, a slight upward revision from previous estimates. This quarterly performance was characterized by a 1.2% expansion in the production sector, driven largely by manufacturing and energy, which offset a 2.0% decline in construction and flat growth in services. While GDP

Subscribe to "Fundamental Analysis" feed

Subscribe
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.