ISM Non-Manufacturing Strong, Prices Paid Falls Again

- ISM Non-Manufacturing for March rose to 60.5 versus estimates of 59.0 and a reading of 60.1 in February.

BOTTOM LINE: Cash-rich companies and consumers cheered by brighter job prospects kept US service industries expanding last month, fueling economic growth heading into the second quarter, Bloomberg reported. The new orders component of the index rose to 59.5 from 56.2 the prior month. The employment gauge fell to 54.6 from a reading of 58.2 in February. The prices paid component of the index fell to 60.5 from 64.8 the prior month. This component has now dropped 22.8% from Sept. 05 highs. I expect ISM Non-Manufacturing to fall back to more average levels over the coming months and the prices paid component to continue to decelerate.