US ISM Non-Manufacturing moderates in March from a high level - Wells Fargo

Analysts at Wells Fargo point out that the 58.8 reading of the ISM non-manufacturing Index signals a slightly slower pace of growth in March. They noted that weaker orders led the decline, but also see supply constraints and price pressures intensifying.

Key Quotes: 

“The ISM non-manufacturing index signaled that growth cooled a bit in March; but, at 58.8, the index remains consistent with the economy expanding at a decent clip. Hiring picked up according to respondents, with the employment index rising 1.6 points to 56.6. We still expect to see nonfarm payrolls moderate in Friday’s payroll report, however, after an exceptionally strong February."

“Despite the pullback, supply constraints seem to be growing. Backlogs of orders, supplier delivery times and input prices all rose more quickly in March and remain near multi-year highs.”