It certainly has not been a great week for economic data relative to expectations at least. Following the weaker than expected ISM Manufacturing report on Monday and this morning's weaker than expected ADP Employment report, the ISM Non-Manufacturing report for March came in weaker than expected as well. While economists were expecting a level of 55.5, the actual reading came in a little more than a point lighter (54.4). While the size of the miss was not as large as the miss in the ISM Manufacturing report and is still indicative of decent growth, it was just another in what has become an unusual string of weaker than expected data. Additionally, with this month's decline, some chart watchers may be growing worried about a second lower high in the ISM Services Index (first chart below table).
As shown in the table, like last month, all ten subcomponents were above 50 once again. That being said, only two of the components (Supplier Deliveries and Import Orders) increased this month relative to last month, while four are higher now than they were last year. Combining the Manufacturing and Non-Manufacturing reports together, this month's overall ISM reading was 54.0, which was down from last month's level of 55.8 and last year's reading of 54.8.