US business activity slows as war-driven costs surge

U.S. business activity slowed in March to its weakest pace in nearly a year as rising costs tied to the Iran conflict weighed on demand, Bloomberg writes. 

A key S&P Global index dipped but remained in expansion territory, while input prices surged to multimonth highs. 

Service sector growth softened, hiring declined and companies passed higher costs to customers, driving the fastest price increases in more than three years. Manufacturing showed modest resilience, with stronger orders and improved output expectations. 

The slowdown reflects mounting pressure from geopolitical tensions, higher energy prices, supply chain disruptions and persistent affordability challenges—factors that are beginning to ripple across global markets.

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