- Lowest since Oct 2021
- Prior services 58.9
- Manufacturing 59.7 vs 58.2 expected
- Prior manufacturing 58.5
- Composite 55.1 vs 58.5 prior
- New services export orders hit survey high
- Employment rose strongly
- New orders and output boosted manufacturing
The survey said services providers hiked their prices at the steepest pace on record. Reading through the details, the fall in confidence is because worries about cost are balancing out surging orders. Looking ahead, it's a question of what will cool first, demand or prices?
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global said:
“Although still indicative of annualised GDP growth of approximately 3%, the April PMI surveys point to the upturn losing some momentum compared to the strong rebound seen in March, when services activity in particular had been buoyed by loosened pandemic restrictions in the US and abroad.
“Many businesses continue to report a tailwind of pent up demand from the pandemic, but companies are also facing mounting challenges from rising inflation and the cost of living squeeze, as well as persistent supply chain delays and labor constraints.
“These headwinds, plus increased concerns over the economic outlook and tightening monetary policy, meant business confidence about the outlook slipped sharply lower in April. However, with the overall pace of economic growth and hiring remaining relatively solid, for now the focus from a policy perspective is likely to remain firmly on the need to rein in the record high inflationary pressures signaled by the survey.”
