US Business Activity Plummets, Inflation Surges

0:00U.S. business activity dropped to its lowest point in 11 months this March, according to a fresh survey from S&P Global. The main culprit was the war in the Middle East, which drove up energy and input costs. Their flash composite PMI index, covering manufacturing and services, fell to 51.4, down from 51.9 in February, and the weakest since last April. Businesses took the biggest hit, with that PMI slipping to 51.1 from 51.7, manufacturing bucked the trend though, climbing to 52.4 from 51.6 helped by easing tariff pressures on orders. Businesses reported much higher input prices, with the index jumping to 63.2 from 60. They linked it straight to the conflict surge in oil, which rose over 30% and gasoline prices that climbed nearly $1 per gallon. Situation-wide, output prices also increased to 58.9, signaling consumer inflation could

1:00hit around 4% soon. For the first time in 13 months, private sector employment contracted, dropping to 49.7 from 50.4 as companies. Cut back amid uncertainty. The Federal Reserve kept interest rate steady last week, and now sees higher inflation ahead, with just one rate cut planned this year. Economists warned the Fed faces a tough balance between curving rising prices, and supporting slowing growth, especially of the war drags on and keeps, disrupting energy supplies and global chains. That's your update from Canada News Today, powered by AI.