While the services PMI dropped from 59.7 to 57.3, well below expectations, the broad Business Activity series plunged from 66.9 to 59.7 The surging inflationary Price Paid series dropped from 73.3 to 72.1, or back to January's level. New Orders and Employment also declined from 64.1 and 53.7, from 64.4 and 55.6 respectively. The only growing components were Backlog of Orders rising 4.0 to 56.0, New Export Orders up 2.5 to 59.0 and Inventory Sentiment up 9.5 to 67.0, which the Surve classifies as "Too High" - this means liquidations are imminent. Hope you have your FIFO on.
Nothing too surprising in the always informative respondents' section - everyone is terrified of inflation and supply chain disruptions.
- Business is steady. Very concerned about high fuel costs and the speed of any Japanese recovery." (Agriculture, Forestry, Fishing & Hunting)
- "Housing market still slow getting started. Freight costs going higher. Prices moving up." (Wholesale Trade)
- "Business activities remain about the same, but the increase in fuel costs has made both a direct and indirect impact." (Public Administration)
- "Occupancy continues to increase compared to last year by about 3 percent." (Accommodation & Food Services)
- "The catastrophe in Japan is severely affecting supply chains for magnetic media." (Management of Companies & Support Services)
- "General state of business has improved slightly over the prior month. There seems to be an increase in qualified customers." (Construction)