Business Activity Index at 69.4%; New Orders Index at 67.2%;Employment Index at 57.2%;Supplier Deliveries Index at 61.0%
TEMPE, Ariz., April 5, 2021 /PRNewswire/ — Economic activity in the services sector grew in March for the 10th month in a row, say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business®. The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: “The Services PMI® registered an all-time high of 63.7 percent, 8.4 percentage points higher than the February reading of 55.3 percent. The previous high was in October 2018, when the Services PMI® registered 60.9 percent. The March reading indicates the 10th straight month of growth for the services sector, which has expanded for all but two of the last 134 months.” “The Supplier Deliveries Index registered 61 percent, up 0.2 percentage point from February’s reading of 60.8 percent. (Supplier Deliveries is the only ISM®Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) “The Prices Index figure of 74 percent is 2.2 percentage points higher than the February reading of 71.8 percent, indicating that prices increased in March, and at a faster rate. According to the Services PMI®, all 18 services industries reported growth. The composite index indicated growth for the 10th consecutive month after a two-month contraction in April and May. There was a substantial increase in the rate of growth in the services sector in March. Respondents’ comments indicate that the lifting of coronavirus (COVID-19) pandemic-related restrictions has released pent-up demand for many of their respective companies’ services. Production-capacity constraints, material shortages, weather and challenges in logistics and human resources continue to cause supply chain disruption,” says Nieves.
All of the 18 services industries reporting growth in March — listed in order — are: Arts, Entertainment & Recreation; Wholesale Trade; Mining; Management of Companies & Support Services; Construction; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Real Estate, Rental & Leasing; Transportation & Warehousing; Public Administration; Finance & Insurance; Utilities; Health Care & Social Assistance; Professional, Scientific & Technical Services; Information; Retail Trade; Educational Services; and Other Services.
- “Logistics delays and uncertainty are creating significant problems with suppliers and inventories. Also, [there are] cost concerns regarding inflated pricing due to logistics and shortages.” (Accommodation & Food Services)
- “Our four Southern California locations are finally open after being closed for 12 months. We are currently experiencing severe supply chain and distribution disruptions related to multiple factors. Reopening of the California and New York movie theater markets [is] creating a surge in demand; also, manufacturers and a distributor partner are dealing with labor shortages.” (Arts, Entertainment & Recreation)
- “Residential new home construction demand continues to outpace supply. Building material delays, discontinuations and shortages are beginning to develop. Shipping delays at the L.A. and Long Beach ports have contributed to longer lead times. Cold weather in Texas has hurt several component manufacturers for building materials. We have encountered the ‘perfect storm’ for building material shortages and price increases.” (Construction)
- “There is optimism in higher education that Fall 2021 will be near normal with vaccinated students, employees and staff returning to their roles on campus.” (Educational Services)
- “Local and national outlook remains positive, despite return-to-work concerns [and] work-from-home-related issues/purchases.” (Finance & Insurance)
- “Vaccination rates are rising, and coronavirus [COVID-19] infections are falling in the region, leading to optimistic outlooks and forecasts for increased business activity. Patient census numbers are trending upward, mainly due to a better ratio of patients seeking elective procedures versus COVID-19 hospitalizations. However, revenues are still soft, indicating that a full rebound in business activity has not yet been realized.” (Health Care & Social Assistance)
- “Resin/oil price increases are beginning to filter down to products that we procure. In addition to price increases, we are also seeing longer lead times as supply chains pivot to find cheaper supply options.” (Information)
- “Lack of chemicals and the recent freeze in Texas has delayed some orders and is creating a micro [price] increases for certain products. Suppliers are using the short-term shortage to their advantage to raise rates.” (Mining)
- “Higher levels of demand related to additional business reopening, and increased activity related to vaccination distribution.” (Professional, Scientific & Technical Services)
- “Business is picking up as mandated restrictions seem to be easing and spring is right around the corner.” (Real Estate, Rental & Leasing)
- “Outlook remains cautiously optimistic for the second half of the year as businesses continue to open up and projects come online.” (Retail Trade)
- “Overall, there are still delays in import shipments of goods, though [the situation has] slightly improved. The market forecast on ocean shipments and logistics is still the same for next quarter; improvements might be seen in Q3. COVID-19 issues continue to impact demand and supply across the globe, and the new stimulus aid is expected to help the economy and lead to an increase in retail spending over the next few months.” Nick Note: as the economy opens up these bottle necks will open up ans drive the market even higher… We have the best of all worlds…. When all the skeptics are convinced we will let them have our longs as we cash in on stupid… BlackJack