The United States private sector recorded a rise in activity in March, according to a preliminary report by S&P Global on Monday. The composite Purchasing Managers' Index (PMI) reached 53.5, compared to 51.6 in February. Services activity climbed to a three-month high, with the PMI adding 3.3 points to 54.3. However, manufacturing fell below the no-change line at 49.8, representing a three-month low.
The report noted businesses were afraid of the impact of tariffs. "A key concern over tariffs is the impact on inflation, with the March survey indicating a further sharp rise in costs as suppliers pass tariff-related price hikes on to US companies. Firms' costs are now rising at the steepest rate for nearly two years, with factories increasingly passing these higher costs onto customers," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.
