Growth in US services activity cooled to 54% in March, down from 56.1% in February, as reported by the Institute for Supply Management (ISM). Companies are facing rising energy prices due to the ongoing conflict in the Middle East, which has disrupted supply chains and slowed supplier deliveries. The prices index increased as oil and fuel costs rose, while the employment index contracted for the first time in four months. Despite these challenges, new orders remained strong, and many companies reported higher prices for construction materials like lumber and steel. The survey chair, Steve Miller, noted that firms are increasing their inventories to prepare for potential disruptions. Additionally, tariff changes under the Trump administration are creating uncertainty in pricing, with recent rollbacks and the reimposition of temporary tariffs impacting various imports.