US economic activity slows in April, PMIs show

23rd Apr 2024 15:20

(Sharecast News) - Economic activity in the U.S. slowed last month, the results of two closely followed surveys revealed.

S&P Global's 'flash' services sector Purchasing Managers' Index slipped from a reading of 51.7 in March to 50.9 for April.

A separate PMI for factory sector activity meanwhile fell from 54.0 to 51.1.

Notably, payrolls were reportedly cut at a pace not seen since the global financial crisis, when the start of the pandemic lockdown is excluded.

In parallel, weaker demand and cooldown in the jobs market led to a "welcome" easing in the rates of increase in selling prices.

"Further pace may be lost in the coming months, as April saw inflows of new business fall for the first time in six months and firms' future output expectations slipped to a five-month low amid heightened concern about the outlook," added Chris Williamson, chief business economist at S&P Global Market Intelligence.

"[...] Notably, the drivers of inflation have changed. Manufacturing has now registered the steeper rate of price increases in three of the past four months, with factory cost pressures intensifying in April amid higher raw material and fuel prices, contrasting with the wage-related services-led price pressures seen throughout much of 2023."