The S&P Global US Services PMI rose to 54.3 in March 2025, a three-month high, from 51 in February, surpassing market expectations of 50.8, preliminary data showed. Service sector output rebounded strongly after hitting a 15-month low in February, driven by improved business inflows, strengthening customer demand, and better weather conditions.

However, exports remained a weak spot, declining for the third straight month. Employment edged up in April, reversing February's small decline, though job growth remained sluggish as firms hesitated to hire amid demand uncertainty. Input costs surged to an 18-month high, while selling prices saw a modest uptick, as businesses kept prices competitive in a weak demand environment.

Meanwhile, service sector confidence declined for the third consecutive month, hitting its second-lowest level since October 2022. Businesses cited concerns over the impact of federal spending cuts, tariffs, and broader policy changes on demand and financial markets.

Source: Trading Economics