U.S. Business Activity Remains Steady in March, Though Cooling Services and Rising Manufacturing Hint at Shifting Economy

• U.S. business activity was stable in March, though services cooled and manufacturing rose • Prices increased across the board, signaling inflation may remain high • Output prices rose at the fastest pace since April 2022, led by services price hikes • Further inflation pressures evident with input prices also rising to 6-month high • Manufacturing expanded to 21-month high, but growth in new orders slowed