S&P Global’s March Flash U.S. Composite PMI fell to an 11-month low. The report indicates a growing risk of stagflation through a combination of slowing growth and accelerating inflation.
Input costs increased at the fastest rate in 10 months. Selling prices reached their steepest growth level since August 2022.
Rising energy costs and Middle East supply disruptions drove these inflationary pressures. S&P Global economists project a modest 1.0% annualized GDP growth rate.
Inflation could accelerate back toward 4% according to the latest data. S&P Global shares fell approximately 3.58% on the day of the release.