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Economic Buzz: US business growth slows to 11-month low as costs surge and services weaken
25-Mar-2026 08:10
US business activity growth slowed to an 11-month low in March, with the S&P Global US PMI Composite Output Index falling from 51.9 in February to 51.4. While still above the 50 mark, this signaled a second straight month of slower expansion and the weakest quarter since Q4 2023.

The slowdown was led by services, where activity grew at the weakest pace in 11 months due to softer new orders and a sharp fall in export sales. In contrast, manufacturing showed resilience, with the PMI rising from 51.6 to 52.4, marking an eighth consecutive month of growth. Factory orders increased at the fastest pace in five months, and export orders stabilized after eight months of decline.

Input costs rose at the fastest rate in 10 months, pushing selling prices up at the sharpest pace since August 2022. Supply chain delays also worsened, with delivery times lengthening to the greatest extent since October 2022.

Employment fell for the first time since February 2025, ending over a year of job growth. While manufacturers remained relatively optimistic, with confidence at a 13-month high, service sector expectations dropped to their weakest since last October, reflecting concerns over rising costs and global uncertainty.

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