The business activity in the US private sector continued to expand at a moderate pace in March, with S&P Global Composite Purchasing Managers’ Index (PMI) coming in at 51.4 (preliminary), down slightly from 51.9 in February.
In this period, the Manufacturing PMI improved to 52.4 from 51.6, while the Services PMI declined to 51.5 from 51.7.
Assessing the survey’s findings, “the flash PMI survey data for March signal an unwelcome combination of slower growth and rising inflation following the outbreak of war in the Middle East,” said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
“The Fed will therefore need juggle these intensifying upside risks to inflation against the growing risk of the economy losing growth momentum, with much depending on the duration of the war and its impact on energy prices and global supply chains,” Williamson added.
Market reaction
The US Dollar Index preserves its recovery momentum following the PMI data and was last seen rising 0.3% on the day at 99.45.
Source: https://www.fxstreet.com/news/us-sp-manufacturing-pmi-rises-to-524-services-pmi-declines-to-511-202603241400
