March Marks a Significant Rebound in US Service Sector

The United States Purchasing Managers' Index (PMI) Composite Output Index, a critical indicator of economic health combining services and manufacturing sectors, rose to 53.5 in March. This figure not only met analysts' expectations but also showed a notable improvement from February's 51.6, as reported by S&P Global on Thursday.

Services PMI Hits Annual High

In a parallel development, the Services PMI Business Activity Index surged to 54.4, up from 51.0 in the previous month, marking the highest level recorded in 2025. This rebound highlights the service sector's recovery from a sluggish start to the year.

Expert Insights on Economic Trends

"March witnessed a much-needed revival in service sector business activities, alongside a return to employment growth following February's downturn," remarked Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. He also pointed out growing concerns among businesses regarding political changes, including potential impacts from DOGE-related budget cuts, tariffs, and the effects of recent policy initiatives on foreign demand.