FX.co ★ US Services Growth Cools in March as ISM Non-Manufacturing PMI Slips to 54.0

The pace of growth in the US services sector eased in March 2026, as the ISM Non-Manufacturing Purchasing Managers’ Index (PMI) fell to 54.0 from 56.1 in February. The latest reading, updated on 6 April 2026, still signals expansion in the services economy, but at a slower rate than the previous month.

February’s figure of 56.1 had indicated robust activity in non-manufacturing industries such as finance, healthcare, retail, and professional services. The moderation to 54.0 in March suggests that while demand remains solid, momentum is cooling compared with earlier in the year.

With the index staying above the 50-point threshold that separates expansion from contraction, the data points to continued, albeit softer, growth in the largest component of the US economy. Investors and analysts are likely to watch upcoming releases closely for signs of whether March’s slowdown reflects a temporary pause or the start of a more sustained deceleration in services activity.