(Alliance News) - US business activity continued to improve in March, data from S&P Global showed Thursday.
The flash US purchasing managers index composite output index declined to 52.2 in March from 52.5 in February. Staying above the 50-mark separating growth from contraction, it indicates growth slowed.
The flash US services business activity index fell to 51.7 in March from 52.3 in February.
"The overall slowdown in the pace of output growth reflected a loss of momentum in the service sector, where activity rose at the weakest pace in three months. While there were some reports of demand improving, anecdotal evidence also suggested that price pressures had restricted the ability of customers to commit to new projects. As a result, the rate of new business growth in the service sector also softened," S&P Global said.
The flash US manufacturing output index rose to a 22-month high of 54.9 in March from 53.5 in February.
The flash US manufacturing PMI improved to a 21-month high of 52.5 in March from 52.2 in February.
Chris Williamson, chief business economist at S&P Global Market Intelligence said: "The brightest news came from the manufacturing sector, where production is now growing at the fastest rate since May 2022. Production gains are linked to improving demand for goods both at home and abroad, driving a further upturn in business confidence in the outlook."
However, he cautioned: "A steepening rise in costs, combined with strengthened pricing power amid the recent upturn in demand, meant inflationary pressures gathered pace again in March. Costs have increased on the back of further wage growth and rising fuel prices, pushing overall selling price inflation for goods and services up to its highest for nearly a year. The steep jump in prices from the recent low seen in January hints at unwelcome upward pressure on consumer prices in the coming months."
The US PMI is produced by S&P Global and is based on original survey data collected from a representative panel of around 800 companies based in the US manufacturing and service sectors. The flash estimate is based on around 85% of total PMI survey responses each month and is designed to provide an accurate advance indication of the final PMI data. The data was collected between March 12 and 20.
By Tom Budszus, Alliance News slot editor
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News
TOP NEWS: US business activity boosted by manufacturing index jump
(Alliance News) - US business activity continued to improve in March, data from S&P Global showed Thursday.
The flash US purchasing managers index composite output index declined to 52.2 in March from 52.5 in February. Staying above the 50-mark separating growth from contraction, it indicates growth slowed.
The flash US services business activity index fell to 51.7 in March from 52.3 in February.
"The overall slowdown in the pace of output growth reflected a loss of momentum in the service sector, where activity rose at the weakest pace in three months. While there were some reports of demand improving, anecdotal evidence also suggested that price pressures had restricted the ability of customers to commit to new projects. As a result, the rate of new business growth in the service sector also softened," S&P Global said.
The flash US manufacturing output index rose to a 22-month high of 54.9 in March from 53.5 in February.
The flash US manufacturing PMI improved to a 21-month high of 52.5 in March from 52.2 in February.
Chris Williamson, chief business economist at S&P Global Market Intelligence said: "The brightest news came from the manufacturing sector, where production is now growing at the fastest rate since May 2022. Production gains are linked to improving demand for goods both at home and abroad, driving a further upturn in business confidence in the outlook."
However, he cautioned: "A steepening rise in costs, combined with strengthened pricing power amid the recent upturn in demand, meant inflationary pressures gathered pace again in March. Costs have increased on the back of further wage growth and rising fuel prices, pushing overall selling price inflation for goods and services up to its highest for nearly a year. The steep jump in prices from the recent low seen in January hints at unwelcome upward pressure on consumer prices in the coming months."
The US PMI is produced by S&P Global and is based on original survey data collected from a representative panel of around 800 companies based in the US manufacturing and service sectors. The flash estimate is based on around 85% of total PMI survey responses each month and is designed to provide an accurate advance indication of the final PMI data. The data was collected between March 12 and 20.
By Tom Budszus, Alliance News slot editor
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News