The Services PMI shows growth in 17 industries, with the composite number rising for the 22nd straight month.
"There was an uptick in business activity in March, but respondents have indicated that they continue to be impacted by capacity constraints, logistical challenges and inflation," said Anthony Nieves, chair of the Institute for Supply Management Services Business Survey Committee. "Labor shortages have eased slightly, as COVID-19 cases have declined and public-health restrictions have been relaxed."
Geopolitical concerns, namely the Russia-Ukraine war, have pushed up material costs, creating uncertainty for manty businesses, Nieves added.
Business Activity Index at 55.5 vs. 55.1 in February.