US GDP growth picks up in Q1, S&P says, as do price pressures

21st Mar 2024 14:01

(Sharecast News) - Economic activity in the U.S. picked up in the first quarter amid "unwelcome price pressures", the results of two surveys revealed.

S&P Global's services sector business activity index slipped from February's level of 52.3 to 51.7.

In parallel, the Purchasing Managers' Index for manufacturing on the other hand improved from 52.2 to 52.5.

According to Chris Williamson, chief business economist at S&P Global Market Intelligence, March's continued expansion in both sectors meant that the U.S. economy recorded its "strongest" quarter since the three months ending in June 2023.

However, price pressures had also picked up.

"The survey data point to another quarter of robust GDP growth accompanied by sustained hiring as companies continue to report new order growth," he said.

"A steepening rise in costs, combined with strengthened pricing power amid the recent upturn in demand, meant inflationary pressures gathered pace again in March."