The US economy shifted down a gear in March - Markit

According to the latest report published by Market Sensitive Information (Markit), U.S. private sector expands at the slowest pace for six months in March. 

Key highlights from the official report

• At 52.9 in March, the Markit Flash U.S. Services PMI™ Business Activity Index1 signalled only a moderate rate of growth across the service economy. The latest expansion of business activity was the weakest since last September, suggesting a sustained loss of momentum following the 14- month peak recorded in January.
• The seasonally adjusted Markit Flash U.S. Composite PMI Output Index registered 53.2 in March, to remain above the 50.0 no-change value for the thirteenth consecutive month. However, the latest reading was down from 54.1 in February and signalled the slowest expansion of private sector output since September 2016.
• At 53.4, down from 54.2 in February, the headline seasonally adjusted Markit Flash U.S. Manufacturing Purchasing Managers’ Index™ (PMI™ ) 2 signalled the slowest overall upturn in business conditions since October 2016.

Key quotes from the official comment

• The economy is struggling to sustain momentum
• 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
• The US economy shifted down a gear in March