The Institute for Supply Management’s (ISM) non-manufacturing index will be released Wednesday morning. It is expected to have fallen to a 58.0 reading in March from 59.7 in February, according to economists polled by Bloomberg.
The ISM non-manufacturing index is often looked at by investors as a gauge for U.S. service industries. February’s reading was unexpectedly strong and was the biggest gain in one year.
“After previously falling sharply around the turn of the year, the strong rebound in the ISM non-manufacturing index in February appeared to make a mockery of fears that the economy is set for an imminent downturn,” Capital Economics wrote in a note to clients on Friday. “We expect the ISM non-manufacturing index to have dropped back in March, consistent with the wider evidence that economic growth is slowing.”
Additionally, investors will get a peek into the March jobs report when ADP releases its national employment report for March ahead of the opening bell. Economists polled by Bloomberg are expecting the report to show a 175,000 increase in private payroll employment during March, down from 183,000 in February.
“We look for ADP private payrolls to grow by 190k in March, following a gain of 183k in February. Labor market conditions remain tight and latest readings from business surveys point to another solid month of employment activity,” Bank of America Merrill Lynch wrote in a note on Friday.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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