Initial assessments of S&P Global’s Composite PMI indicate that the rate of expansion in US commercial operations decelerated in April. The index declined to 51.2, compared to 53.5 in March. This reading, marginally above the 50 mark indicating expansion, suggests a weakening in the private sector’s growth trajectory.
A deeper look into the figures exposed varied results among different industries. Production in the manufacturing sector sustained a slight upward trend, with the Manufacturing PMI rising to 50.7 from 50.2. Conversely, the Services PMI experienced a decrease, falling from 54.4 to 51.4, potentially signaling a reduction in demand within the larger services industry.
Following the publication, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented: “The preliminary PMI figures for April suggest a notable deceleration in the expansion of commercial activity as the second quarter begins, coupled with a significant drop in confidence regarding future prospects. Concurrently, inflationary pressures have increased, posing a challenge for the central bank, which faces growing demands to bolster a faltering economy precisely when inflation appears poised to increase.”
