In March, the US non-manufacturing ISM disappointed, falling more than two points, while the consensus was looking for only a marginal decline. The headline index dropped from 59.7 to 57.3, reversing the previous two months’ gains. The details show a significant decline in business activity (59.7 from 66.9), while also new orders (64.1 from 64.4), supplier deliveries (51.5 from 52.0), employment (53.7 from 55.6) and imports (53.5 from 50.0) dropped, but at a slower pace. Backlog of orders, inventory sentiment and new export orders improved, while inventory sentiment stabilized in March. Prices paid dropped slightly compared to last month, from 73.3 to 72.1, but remains at elevated levels. Sentiment in the services sector eased somewhat in March, after exceptionally strong growth in the first two months of the year. The sector however continues to expand at a decent pace so there is no need to worry as also new orders continue to grow at a strong pace.