FX.co ★ US Private Sector Activity Growth Picks Up

The S&P Global US Composite PMI increased to 53.5 in March 2025, up from February's 10-month low of 51.6, according to a preliminary estimate. This indicates an acceleration in the growth of the US private sector, reaching its highest pace since December 2024. The upturn was driven by significant growth in the service sector, where the PMI climbed to 54.3 from 51 in February, effectively counteracting a renewed decline in the manufacturing sector, which saw its PMI drop to 49.8 from 52.7. Employment experienced a modest rise in March, resuming growth after a slight dip in February. In terms of pricing, input price inflation surged to its highest level in nearly two years, largely impacting the manufacturing sector due to tariff policies. However, competitive pressures kept the increase from significantly translating to selling prices. Finally, business expectations for the coming year fell to their second-lowest level since October 2022, as companies exercised greater caution amid concerns over customer demand and the effects of new government policies.