<\/p>\n\n\n\n
U.S. economic momentum weakened in March, with business activity growth slowing to its lowest level in nearly a year as companies grappled with rising costs and heightened uncertainty linked to the ongoing conflict in Iran.<\/p>\n\n\n\n
According to S&P Global, the flash U.S. Composite PMI<\/strong> slipped to 51.4<\/strong> from 51.9<\/strong> in February. While the reading remains above the 50 threshold that signals expansion, it points to a clear loss of momentum in the world\u2019s largest economy.<\/p>\n\n\n\n The slowdown was led by the services sector, which remains the backbone of U.S. economic activity:<\/p>\n\n\n\n This divergence highlights how consumer-facing industries are more exposed to:<\/p>\n\n\n\n S&P Global noted that sectors such as travel, transport, and tourism are facing particular pressure due to a mix of affordability constraints and financial market volatility.<\/p>\n\n\n\n Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, described the current environment as an \u201cunwelcome combination\u201d of slower growth and rising inflation<\/strong>.<\/p>\n\n\n\n Businesses reported:<\/p>\n\n\n\n The impact of the Iran conflict is being felt through multiple channels:<\/p>\n\n\n\n Companies are responding defensively by:<\/p>\n\n\n\n The latest PMI data suggest that U.S. economic growth is cooling significantly:<\/p>\n\n\n\n This marks a notable slowdown compared to earlier expectations of stronger expansion.<\/p>\n\n\n\n A key driver behind the slowdown is the sharp rise in oil prices since the conflict began.<\/p>\n\n\n\n The effective disruption of shipping through the Strait of Hormuz<\/strong>, which carries around 20% of global oil supply<\/strong>, has:<\/p>\n\n\n\n As a result:<\/p>\n\n\n\n The Federal Reserve recently held interest rates steady, citing uncertainty around the economic impact of the conflict. However, the latest data complicates the outlook:<\/p>\n\n\n\n Markets, which previously expected rate cuts in 2026, are now beginning to consider the possibility that:<\/p>\n\n\n\n The U.S. economy is entering a more fragile phase characterized by:<\/p>\n\n\n\n The combination raises the specter of stagflation-like conditions<\/strong>, where weak economic activity coincides with rising prices\u2014posing a significant challenge for policymakers and investors alike.<\/p>\n","protected":false},"excerpt":{"rendered":" U.S. economic momentum weakened in March, with business activity growth slowing to its lowest level in nearly a year as companies grappled with rising costs and heightened uncertainty linked to the ongoing conflict in Iran. According to S&P Global, the flash U.S. Composite PMI slipped to 51.4 from 51.9 in February. While the reading remains …<\/p>\n","protected":false},"author":9,"featured_media":30981,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-124920","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/124920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=124920"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/124920\/revisions"}],"predecessor-version":[{"id":124921,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/124920\/revisions\/124921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/30981"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=124920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=124920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=124920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Services sector takes the biggest hit<\/h3>\n\n\n\n
\n
\n
Inflation and uncertainty weigh on demand<\/h3>\n\n\n\n
\n
\n
\n
Growth outlook weakens<\/h3>\n\n\n\n
\n
Oil shock driving inflation surge<\/h3>\n\n\n\n
\n
\n
Fed faces a difficult dilemma<\/h3>\n\n\n\n
\n
\n
Bottom line<\/h3>\n\n\n\n
\n