US Composite PMI Revised Sharply Lower to 2023-Lows

The S&P Global US Composite PMI was revised sharply lower to 50.3 in March 2026 from a preliminary 51.4, the lowest reading since September 2023, compared to 51.9 in February. The reading pointed to a sharper slowdown in private sector activity, which nearly stalled, as a renewed contraction in service sector activity (49.8 vs 51.7) offset a stronger uptick in manufacturing output. Also, growth in new work eased to a three-month low, while business confidence in the coming 12 months was the most subdued since last October. In turn, private sector employment fell for the first time in just over a year. Input price inflation, meanwhile, accelerated to the highest seen in 2026 so far whilst output charges rose at a stronger pace.

The flash S&P Global US Composite PMI slipped to 51.4 in March 2026 from 51.9 in February, marking its lowest level since April last year and signaling a second straight month of slowing growth. While still above the 50 threshold that indicates expansion, the reading points to the weakest quarterly performance since late 2023. Business activity slowed to an 11-month low as new orders softened and prices surged following the war in the Middle East. The slowdown was led by the services sector, while manufacturing showed resilience with stronger output and order growth, supported in part by reduced tariff concerns. Confidence across the private sector weakened, leading to the first drop in employment in over a year. Input costs rose sharply, driving the fastest increase in selling prices since August 2022, largely linked to higher energy costs and tighter supply, while manufacturing delivery times lengthened significantly.

The S&P Global US Composite PMI dropped to 51.9 in February from 53 in January, the lowest in ten months and below preliminary estimates of 52.3. Growth was constrained by a broad-based weakening in the respective expansions in both manufacturing and service sector output. There was also a concurrent moderation in new business growth midway through the first quarter. Firms took on additional workers, but only fractionally as confidence in the outlook remained below its historical trend. Prices data meanwhile showed that increases in both costs and selling prices were little changed, and well above respective series averages.