Buyers stroll along 5th Avenue in Manhattan, New York
The growth of the services sector in the United States slowed more than expected in March, while prices paid by businesses for inputs skyrocketed, marking an initial sign that the conflict in the Middle East is fueling inflationary pressures.
The ISM services index came in at 54.0 last month, down from 56.1 in February, whereas economists polled by Reuters had forecast a decline to 55.0.
An index above 50 indicates growth in the services sector, which represents more than two-thirds of American economic activity.
The conflict between the United States and Israel on one side, and Iran on the other, since late February, has led to a surge in global oil prices, while the average price of gasoline at U.S. gas stations has exceeded $4 a gallon for the first time in over three years.
The ISM index measuring prices paid by businesses for inputs rose to 70.7 last month, its highest level since October 2022, up from 63.0 in February.
The subindex for supplier delivery times also increased to 56.2, up from 53.9 in February, reflecting longer lead times at factories, with food, beverage, and tobacco manufacturers citing “container delays.”
The new orders component, meanwhile, rose to 60.6, up from 58.6 in February.
(Reporting by Lucia Mutikani; Editing by Diana Mandi; Translated by Augustin Turpin)
/2026/04/06/69d401ccbb99c879677840.jpg "War in Ukraine: Kiev officially proposes an energy truce to Moscow for Easter, announces Volodymyr")
