U.S. Business Activity Hits 11-Month Low in March, Private Sector Jobs Shrink

Summary：S&P Global’s March survey shows U.S. business activity dropped to its lowest in 11 months, with private sector employment shrinking for the first time due to rising energy prices and Middle East conflict.

According to the latest survey by S&P Global, US business activity in March fell to its lowest level in 11 months, mainly due to uncertainties from the Middle East conflict and rising energy prices. The survey shows that the preliminary value of the US Composite Purchasing Managers Index (PMI) dropped to 51.4, down from February's 51.9, reflecting heightened concerns in the market over accelerating inflation in the coming months.

The Middle East conflict has driven up the prices of energy products and other inputs, leading to the first decline in private sector employment. Particularly in the service sector, the preliminary PMI fell from 51.7 in February to 51.1, indicating that businesses are facing the dual pressures of rising costs and shrinking demand.

Nevertheless, manufacturing activity improved, with the preliminary manufacturing PMI rising from 51.6 in February to 52.4, showing that "the impact of tariffs on orders has somewhat eased." S&P Global stated that the rise in costs mainly stems from the surge in energy prices and supply chain tightness, which has been passed on to consumers, pushing up the output price index to 58.9.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Previous Next

Comments

Written byTraderKnows

Created date:2026-03-24 15:01

Last Updated:2026-03-24 15:06

Independent Analysis: Manually researched and fact-checked by the TraderKnows Compliance Team, based on public regulatory records.

Wiki

Inflation

Inflation refers to the phenomenon where the purchasing power of a country's (or region's) currency decreases, leading to a general rise in the prices of goods and services. It is reflected in the fact that, over a certain period, the same amount of money can only buy fewer goods and services.