US business activity expands at slowest pace in six months in March
Business activity in the US expanded at its slowest pace since September 2016 in March, according to data released on Friday.
Markit's flash US composite output index - which measures both the manufacturing and services sectors - fell to 53.2 from 54.1 in February, hitting a six month low.
Meanwhile, the services index fell to a six-month low of 52.9 from 53.8 the month before, while the manufacturing purchasing managers' index dropped to 53.4 from 54.2, hitting a five-month low. Analysts had been expecting a reading of 54.2 for services and 54.8 for manufacturing.
A reading below 50 indicates contraction, while a reading above signals expansion.
Chris Williamson, chief business economist at IHS Markit, said: "The US economy shifted down a gear in March. A slowing in the pace of growth signalled by the PMI surveys for a second straight month suggests that the economy is struggling to sustain momentum. The survey readings are consistent with annualized GDP growth of 1.7% in the first quarter, down from 1.9% in the final quarter of last year.
“The employment readings from the survey have also deteriorated, suggesting private sector hiring is running at a reduced rate of around 120,000 per month."