US Business Activity Climbs in March

The United States private sector experienced a notable increase in activity during March, as revealed by a preliminary report from S&P Global. The composite Purchasing Managers' Index (PMI) rose to 53.5, up from 51.6 in February, signaling growth.

Services Sector Leads the Way

Services activity reached a three-month high, with the PMI increasing by 3.3 points to 54.3. This surge highlights the sector's resilience and contribution to the overall economic improvement.

Manufacturing Sector Faces Challenges

Contrastingly, the manufacturing sector dipped below the no-change line to 49.8, marking a three-month low. This decline underscores the varying impacts across different sectors of the economy.

Tariff Concerns Loom Large

Businesses expressed worries over the potential impact of tariffs on inflation. "The March survey indicates a sharp rise in costs as suppliers pass tariff-related price hikes onto US companies," noted Chris Williamson, S&P Global Market Intelligence Chief Business Economist. This situation has led to the steepest rise in firms' costs in nearly two years, with manufacturers increasingly transferring these costs to customers.