- Prelim was 50.9
- Prior was 51.7
- Composite PMI 51.3 vs 50.9 prelim
- Prior composite PMI was 52.1
- Services PMI 51.3 vs 50.9 prelim. Last month the PMI was 51.7
In their own words, Chris Williamson, business economists at S&P global market intelligence said:
"Service sector growth slowed in April to point to a sluggish start to the second quarter for the US economy. Alongside a concomitant cooling in the rate of growth of manufacturing output, the weaker service sector performance means overall business activity grew in April at the slowest rate seen so far this year. At current levels, the PMI indicates that GDP is expanding at a modest annualized rate of approximately 1.5% so far in the second quarter.
"Demand has weakened, as signaled by the first fall in new orders for goods and services for six months, in part a reflection of both businesses and households adjusting to higher costs and the prospect of higher for longer interest rates. Business optimism has likewise cooled, dropping to the lowest since November, and companies are taking a more cautious approach to staffing levels.
"From an inflation perspective, the April survey brought some good news in that prices charged for services rose at a much reduced rate, registering one of the smallest increases seen over the past four years as greater competition and lower wage growth were reported to have taken some of the heat out of price setting."
Suddenly, the tide seems to be turning to softer on growth and also inflation within the services sector...The indices stlll remain above the 50.0 levels comments point to slower which is good for the economy.
The US stocks are trading at highs. Yields remain lower but off lows for the day.
