Economy jolted by Iran war. Inflation bubbles up and service companies reduce employment.

Dow Jones04-06

MW Economy jolted by Iran war. Inflation bubbles up and service companies reduce employment.

By Jeffry Bartash

ISM price index jumps to highest level since 2022

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The largest part of the economy grew a bit slower in March as the Iran war drove up oil and other prices and companies responded by reducing employment, suggesting a rockier path for the economy until the conflict ends.

A survey of service companies such as banks, retailers and restaurants climbed slipped to 54.0% in February from 56.1% in the prior month, the Institute for Supply Management said Monday.

The February reading was the highest in 3 1/2 years.

Any number above 50% is a sign that business is growing. The index has topped this key threshold for 21 months in a row.

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX rose in Monday trading.

-Jeffry Bartash

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April 06, 2026 10:09 ET (14:09 GMT)

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