US business activity slips to 11-month low in March amid Iran war, S&P Global survey shows
Source: Reuters
U.S. business activity slowed to an 11-month low in March as the war in the Middle East raised prices for energy products and other inputs, a survey showed on Tuesday, reinforcing fears of an acceleration in inflation in the months ahead.
The survey from S&P Global also showed a deterioration in sentiment that contributed to the first decline in private-sector employment in just over a year. The findings at face value would suggest persistent labor market weakness, though timely data like weekly claims for unemployment benefits have remained consistent with stable conditions.
"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. "Companies are reporting a hit to demand from the additional uncertainty and cost-of-living impact generated by the conflict."
S&P Global said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 51.4 this month. That was the lowest level since last April and followed a 51.9 reading in February.
Read more: https://www.reuters.com/business/us-business-activity-slips-11-month-low-march-amid-iran-war-sp-global-survey-2026-03-24/