Rising Material costs drag down US manufacturing in March

US manufacturing output declined in March as material costs rose following new import tariffs imposed by the administration, Bloomberg reports.

The S&P Global US Manufacturing PMI fell by nearly 3 points in March to 49.8, retreating from its highest level since mid-2022. As the agency emphasizes, any reading below 50 signals contraction in the manufacturing sector.

The Services PMI climbed to a three-month high during the same period, buoyed by stronger business formation and normalized weather patterns across the US. However, Bloomberg reports growing unease among domestic suppliers amid new import tariffs and federal spending cuts.

March saw US manufacturing output contract, alongside the first sector-wide employment decline since October. Bloomberg reports order growth nearing stagnation, while businesses show diminishing urgency to front-run impending import tariff increases.