Hospital ISM Report Sees Economic Activity in Hospital Subsector Growing at Lowest Rate Since 2023

The latest “Report on Business” from Hospital ISM stated that “economic activity in the hospital subsector grew in March for the 19th consecutive month after contracting twice in the previous four-month period.”

Despite the fact that this marks the 19th consecutive month of growth for the “Hospital PMI” (Purchasing Managers Index), the reading of 51 percent is a “5-percentage point decrease from the February reading of 56 percent.” It represents the lowest reading since August 2023.

Some noteworthy readings include the Supplier Deliveries Index returning to contraction, which “indicates faster delivery performance” after expanding for 18 consecutive months. Additionally, the Business Activity Index remained in expansion territory; the New Orders Index expanded for the fifth consecutive month; and the Employment Index remained in contraction territory.

Nancy LeMaster, chair of the ISM Hospital Business Survey Committee, said that panelists “continued to be concerned about the impact of tariffs and government funding reductions. Volumes were lower than the previous month, with seasonal respiratory illnesses continuing to be prevalent. Some panelists expressed concern that surgical volumes were constrained by economic uncertainty. Supplier deliveries were faster, although increased levels of product back orders were cited.”