Services See Increase In Activity

The Institute for Supply Management (ISM),a 45,000-member trade and research organization of business purchasing managers and suppliers,reported that its index of business activity in the services sector reached a record high in March. New orders, order backlogs, exports, inventories and employment all increased in March compared with February.

The data indicates that the channel should continue to see strong and growing technology sales opportunities in the services sector, which accounts for 80 percent of U.S. gross domestic product.

Fifteen industries reported higher levels of business activity, showing that strength in the nonmanufacturing sector of the economy is broad-based. Sectors reporting the highest rates for growth included construction, retail and wholesale, mining, communications and business services. These areas are likely to offer the best sales opportunities for solution providers.

Employment in the services sector increased for the sixth straight month in March and expanded at a slightly faster rate than in February. Sixteen of the 20 industries covered in the ISM report showed gains in employment; among those showing the highest increases were retail, insurance, health services and mining.

Higher employment is a sign that business leaders are more optimistic about the longer-term future of the economy in general and their industries in particular, which is yet another positive sign for the channel.

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