According to S&P Global chief business economist Chris Williamson, March PMI data showed near-stalling U.S. growth, a first services contraction since January 2023, and rising inflation pressure tied to higher energy costs.
U.S. March S&P Global PMI data pointed to a sharp slowdown in economic activity, with chief business economist Chris Williamson saying the economy was running at a 0.5% annualized growth rate in March. The Services PMI fell to 49.8, its lowest level in three years and below the 50 threshold that separates expansion from contraction, marking the first contraction in services activity since January 2023. The Composite PMI declined to 50.3, below the 51.4 forecast and prior reading. Williamson also said firms were facing surging energy costs and that the survey indicated consumer price inflation could accelerate to near 4%.