(April 3): US services activity shrank in March for the first time in three years as a gauge of new business slumped in the wake of the Iran war.
The S&P Global final March services business activity index fell to 49.8 from a preliminary reading of 51.1, data released on Friday showed. Figures below 50 indicate contraction. A gauge of prices paid for inputs climbed to a three-month high, leading to a pickup in prices charged to customers.
Service providers also became more downbeat on the prospects for future business activity.
“Worst hit is consumer-facing service sectors where, barring the pandemic lockdowns, the downturn reported in March was among the steepest recorded since data were first available in 2009,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement.
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