In light of a robust growth in new orders for US-borne core capital goods and services alongside massive pandemic relief bills disbursed during first quarter of 2021, the US Services Sectors, accountable for roughly a two-third of entire US economic activity, scaled to an all-time high on record in March, a survey from Tempe-based business research group ISM (Institute of Supply Management) had unveiled earlier on Monday, suggesting a sharp turnaround in US economy.
In point of fact, recent upbeat ISM data on vast US Services Sectors’ activities, which came forth as the latest indication of a roaring rebound in US economy, followed a riant upsurge in US non-farm payrolls released on Friday showing that the economy had added 916,000 jobs last month, the strongest level since August 2020.
Simply put, in the latest flashpoint of a US economy which appears to be hovering at the brisk of a bold economic recovery, US Services Sectors’ gain in March was more likely catapulted by an acceleration in vaccination drive in the US that kept hospitalization rates low despite a sharp uptick in pandemic cases, suggested analysts.
US Service Sectors activity hits all-time peak in March
In tandem, according to the Tempe-based business research group’s index for US non-manufacturing activity, accountable for roughly 67 per cent of entire US economy, bounced back to an all-time high of 63.7 in March following a reading of 55.3 registered in February.
Meanwhile, citing optimisms of a dynamic expansion in US economy over second quarter of 2021, a lead US economist at Oxford Economics in New York, Oren Klachkin said, “Vigorous services activity in March sets the stage for robust expansion in the second quarter.
All the right pieces for a faster services recovery – expanded vaccine eligibility, reopenings, and historic fiscal expansion – are falling into place”.