US services PMI at six-month low in March

Growth in the US services sector slowed to a six-month low in March, according to figures released on Wednesday.

Markit's final US services business activity index fell to 52.8 from 53.8 in February, missing expectations for a reading of 53.1.

Meanwhile, the final composite PMI output index eased to 53.0 in March from 54.1 the month before.

Markit attributed the loss of momentum to weaker inflows of new work, with the surveys providing some evidence that demand is being dented in part by higher prices.

Chris Williamson, chief business economist at IHS Markit, said: "The March PMI numbers add to the picture of a relatively modest opening quarter to 2017 for the US economy. The surveys of manufacturing and services are running at levels consistent with GDP expanding by 1.7% in the first quarter.

"Business confidence, although up on February, has failed to regain the levels seen at the start of the year, suggesting a less ebullient mood has developed among companies than seen in the immediate aftermath of the presidential election."