Input Stories

The S&P Global Flash U.S. Manufacturing PMI fell slightly from 52.7 in February to 49.8 in March, dropping below the 50-point marker that signals deterioration in business conditions. Factory production declined for the first time since October 2024, with companies noting fewer instances of front-running production due to tariff fears. Slowing of new orders after two months of solid gains further depressed the Manufacturing PMI. Meanwhile, supplier delivery times shortened, indicating slightly less busy supply chains.

Overall business sentiment picked up in March, led by improvements in the service sector that offset declines in manufacturing. Optimism about future business conditions fell to the lowest point since October 2022, with companies citing weakening consumer demand and the impact of policies from the new administration. Input prices jumped in the manufacturing sector, likely due to tariff policies, but competition has limited companies’ ability to pass along costs and raise selling prices.