Despite the recent slide in 'hard' macro data, analysts expected an incremental improvement in the preliminary April S&P Global PMI data this morning.
Consensus was right asboth Services and Manufacturing surveys signaled an uptick in April
US business activity growth recovered slightly in April having slowed to near-stagnation in March following the outbreak of war in the Middle East. However, the overall pace of expansion remained subdued, most notably in the services economy where demand faltered.
Flash USServicesPMI Business Activity Index: 51.3 (March: 49.8).2-month high.
Flash USManufacturingPMI: 54.0 (March: 52.3).47-month high.
“A rebound in business output growth in April is good news after the near-stagnation seen in March,"but, warns Chris Williamson,Chief Business Economist at S&P Global Market Intelligence:
"...over the past three months we have seen the weakest expansion of output recorded since the start of 2024 with the war in the Middle East squarely to blame."
The April PMI is broadly consistent with the economy struggling to manage annualized growth in excess of 1%, with the vast service sector acting as the principal drag.
"Orders for services ranging from travel and tourism to financial products barely rose as the war caused hesitancy for spending among both household and business customers, with surging prices and the prospect of higher borrowing costs acting as a further deterrent."
There was better news from manufacturing:
Source: ZeroHedge News
