The US economy showed clear signs of slowing in April, with S&P Global flash composite PMI falling from 53.5 to 51.2, its lowest level in 16 months. While manufacturing activity edged up slightly from 50.2 to 50.7, the services sector lost significant momentum, dropping from 54.4 to 51.4.
According to S&P Global’s Chris Williamson, the early data signals a “marked slowing of business activity growth” at the start of Q2, with output rising at its weakest pace since December 2023. This implies a modest annualized GDP growth rate of around just 1.0%.
At the same time, inflationary pressures are re-emerging. Companies reported a sharp uptick in input costs, led by tariff-related price increases and persistent wage pressures.
In manufacturing, price increases reached their fastest pace in nearly two-and-a-half years. Services firms also raised their selling prices at the highest rate in over a year.
