US PMI Falls, Services Weaken, Manufacturing More Resilient
US private sector business activity weakened in March 2026, as reflected in the flash S&P Global US Composite PMI, which fell to 51.4 from 51.9 in February. This was the lowest level since April of last year and marked the second consecutive month of slowing growth. While still above the 50-point threshold (which indicates expansion), the data pointed to the weakest quarterly performance since late 2023.
S&P Global noted that the slowdown was primarily due to weakening new orders and soaring prices following the conflict in the Middle East. Business activity fell to an 11-month low, indicating that the impact of the conflict is beginning to permeate sentiment, demand, and operating costs, particularly through energy and supply chain channels.
The slowdown was primarily led by the services sector, while manufacturing showed relative resilience with stronger output and order growth. S&P Global noted that manufacturing was also helped by easing tariff concerns, which helped some companies maintain production activity despite the worsening macroeconomic environment.
However, private sector confidence weakened, leading to the first decline in employment in over a year. This signal is important because it signals companies are becoming more defensive as uncertainty increases and costs rise.
Price pressures are a key focus. Input costs rose sharply, driving the fastest increase in selling prices since August 2022, largely attributed to rising energy costs and tighter supply. In the manufacturing sector, delivery times also lengthened significantly—illustrating logistical disruptions that could add to cost pressures and prolong inflationary effects.
Source: newsmaker.id
