Business activity in the U.S. services sector slowed in March, as the ISM Non-Manufacturing Business Activity Index eased to 53.9 from 59.9 in February 2026. The latest reading, updated on 6 April 2026, still signals expansion in the sector but points to a moderation in growth compared with the previous month.
February’s 59.9 reading had indicated robust momentum, placing business activity firmly in strong expansion territory. The pullback to 53.9 in March suggests that while demand and output in services remain on an upward trajectory, the pace of that growth has cooled noticeably.
Analysts and market participants will likely interpret the shift as a sign that service-sector strength—an important pillar of overall U.S. economic performance—may be normalizing after a period of elevated activity. With the index remaining above the 50 threshold that separates expansion from contraction, the data indicate continued growth, albeit at a more measured rate heading into the second quarter of 2026.
