US: Capacity Pressures Constrain Output as New Order Expands Fastest in 6.5 Years

U.S Composite Output Index slipped to a 2-month low of 59.1 in March, down from February’s 59.5, according to IHS Markit press release. The index signaled the second-fastest private sector upturn for six years. 

• Flash Services Business Activity Index hit an 80-month high of 60.0, up from 59.8 in February
• Flash Manufacturing PMI reached a 2-month high of 59.0, up from 58.6 in February
• Flash Manufacturing Output Index dropped to a 5-month low of 54.5, down from 57.8 in February
• Goods producers reported the sharpest rise in new orders since June 2014 amid capacity pressures that constrained manufacturing output growth.
• Service providers recorded the steepest increase in new business for almost 3 years on stronger demand and easing COVID-19 restrictions.
• Output cost inflation rose to the fastest on record as cost of materials rose. 
• Overall business confidence picked in March, running at a level rarely exceeded over the past seven years. 

EURUSD is down 0.21%