U.S. economic activity expanded at a faster pace in March as strength in services offset an unexpected downturn in manufacturing, but price pressures continue to mount, according to monthly business surveys set out Monday.

The S&P Global Flash U.S. Composite PMI–which gauges activity in the manufacturing and services sectors–rose to 53.5 this month from 51.6 in February. The reading above 50 suggests overall activity continued to expand, and at its fastest pace in three months.

The services index accelerated to 54.3 in March from 51.0 in February, a sharper rise than economists had expected, according to a poll compiled by The Wall Street Journal. In contrast, the gauge of manufacturing fell back to 49.8, suggesting activity at U.S. factories contracted a little over the month.

“A welcome upturn in service sector activity in March has helped propel stronger economic growth at the end of the first quarter,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

That rebound could prove transitory, however, Williamson said.

“Some of the March upturn in services was reportedly due to business picking up after adverse weather conditions had dampened activity across many states in January and February, which could prove a temporary bounce,” he said.

Still, the pickup in overall activity should help to steady nerves around signs of weakening in a U.S. economy beset by uncertainty over trade and economic policy. But cost pressures worsened over the month, with input-price inflation rising at its fastest rate in close to two years. In manufacturing, inflation is now at its most rapid in 31 months, the surveys showed. The expected widespread imposition of import tariffs was largely to blame for that increase, though higher labor costs were also reported by respondents to the surveys.

That contributed to growing gloom about prospects for the months ahead.

The “most widely cited [worries] were concerns about the impact of federal spending cuts and tariffs,” Williamson said.

“A key concern over tariffs is the impact on inflation,” he added. “Factories [are] increasingly passing these higher costs onto customers.”