Mumbai, April 6 -- The US services sector saw a small decline in activity in March 2026, marking its first contraction in over three years, according to S&P Global data. The Services PMI index dropped to 49.8 from 51.7 in February, indicating a mild slowdown.
Businesses reported weaker demand, with new orders growing at the slowest pace in nearly two years. Many companies linked this slowdown to reduced client confidence, largely concerns over rising prices and uncertainty caused by the ongoing conflict in the Middle East.
Exports also fell more sharply, as trade tensions and tariffs combined with the negative impact of the conflict on global sentiment. Looking ahead, business confidence weakened, with firms worried about higher living co...