US Factory Activity Slips as Materials Costs Rise on Tariffs
- S&P Global flash factory gauge falls to 49.8 from 52.7
- Prices paid by producers jump to highest since early 2023
This article is for subscribers only.
US manufacturing slipped back into contraction territory this month, plagued by a tariff-related rise in materials costs, while the service sector outlook deteriorated.
The S&P Global flash March factory index dropped nearly 3 points to 49.8 from the highest level since mid-2022. Figures below 50 indicate contraction. Despite an improvement in output among service providers, due in part to stronger demand, sentiment about prospects over the coming year slid to the second-lowest since 2022.