ISM: US services slow in March as oil boosts inflation
Business
The US services sector lost some steam in March 2026, with growth slowing down according to the latest ISM report.
Rising oil prices, up more than 50% because of the ongoing U.S.-Israel conflict with Iran, are adding to inflation pressures.
Business input costs highest since 2022
Business input costs just hit their highest level since late 2022, thanks to global tariffs.
Even though private service jobs bounced back a bit in March, overall employment in the sector actually shrank.
With all this going on, the Federal Reserve is seeing reduced odds of a rate cut for now, waiting to see how inflation plays out in upcoming reports.