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US economic growth slowed down in March

US economy

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The US economic growth slowed down in March. The overall index of production in the private sector by IHS Markit, which includes industry and services, dropped to 54.3 points from 55.5 points a month earlier. The limit of 50 points separates the growth from the drop.

Overall, business activity in the US industrial sector slowed down to a 21-month low, and service activity to a two-month low. The index, which estimates production itself, collapsed to a 33-month low of 51.6 points, compared to 52.7 points in February. This slowdown in industrial expansion is contributing to weaker new industrial orders, employment, and manufacturing.

“March data show a slowdown in business growth in the US private sector, with industrial firms experiencing a particularly weak end in the first quarter of 2019”, said IHS Markit.

According to Chief Economist Chris Williamson, “the US companies report a weaker end of the first quarter. However, PMI data remains encouragingly sustainable, suggesting an annual economic growth of 2% in the first quarter of 2019”. He also highlights the existence of a “gap between the manufacturing sector and the service sector, as manufacturers and exporters of goods are experiencing difficulties in a worsening external environment and in view of concerns about the negative impact of the trade war”.

Earlier, it was reported a more serious slowdown in business expansion in the Eurozone private sector in March, with a sharp deterioration in industrial activity to 71-month low and activity in the German industrial sector to a 79-month low.