The output growth of the United States services sector posted a six-year high in March, according to a report by IHS Markit.
- The IHS Markit US Services PMI Business Activity Index rose to 60.4 in March from 59.8 in February, and up from the estimated 60.0
- The rate of output growth signalled was the fastest since July 2014, which service providers attributed to greater client demand and the easing of virus containment restrictions in several states.
- New businesses increased further during the month, with the rate of growth accelerating for the third successive month. The upturn in client demand was the quickest since March 2015.
- Total sales were supported by a renewed increase in new export orders which rose for the second time in the past four months.
- input costs soard in March, as inflation accelerated to the fastest since data collection services began in October 2009.
- Meanwhile, business expectations regarding the outlook for output over the coming year improved on the back of the vaccine rollout and easing of restrictions.