US: Flash PMI indicates slower production expansion and significant price increases after conflict erupts in the Middle East

US Economic Activity Slows Amid Global Tensions

In March, growth across American businesses eased to its lowest point in nearly a year, as companies experienced a modest slowdown in new orders and a surge in costs after conflict erupted in the Middle East. The service industry bore the brunt of this deceleration, while manufacturers saw improvements in both production and incoming orders.

Expectations for future performance also varied: service providers grew more cautious, whereas manufacturers remained relatively optimistic, partly due to reduced concerns over tariffs. Despite this, overall confidence in the private sector weakened, leading to the first recorded decline in recent months.