US Private Sector Shows Resilience in March

According to a preliminary report by S&P Global, the United States private sector experienced a notable increase in activity this March. The composite Purchasing Managers' Index (PMI) rose to 53.5, up from 51.6 in February, signaling a positive shift in the business landscape.

Services Sector Leads the Charge

The services sector, in particular, reached a three-month high with its PMI climbing 3.3 points to 54.3. This growth highlights the sector's robust performance and its pivotal role in driving the overall economic activity.

Manufacturing Sector Faces Challenges

Contrastingly, the manufacturing sector dipped below the no-change line, recording a PMI of 49.8, marking a three-month low. This downturn reflects the ongoing challenges faced by manufacturers in the current economic climate.

Tariff Concerns Loom Large

Businesses are increasingly wary of the potential impact of tariffs on inflation. "The March survey indicates a sharp rise in costs as suppliers pass on tariff-related price hikes to US companies. Firms' costs are escalating at the steepest rate in nearly two years, prompting factories to transfer these higher costs onto customers," explained Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.