Preliminary data published by S&P Global on Friday showed that U.S.
private sector business activity continued to expand in early April, supported
by solid growth in both the manufacturing and service sectors.
According to the report, S&P Global flash services purchasing manager's
index (PMI) came in at 53.7 early this month, up from 52.6 in March. The latest
reading pointed to the fastest growth in the U.S. service sector activity since
April 2022. Economists had predicted the indicator to drop to 51.5. A reading
above 50 signals an expansion in activity, while a reading below this level
signals a contraction.
Meanwhile, S&P Global flash manufacturing purchasing manager's index
(PMI) increased to 50.4 in April from 49.2 in the previous month. The reading
pointed to the first expansion in factory activity since October 2022. Economists had expected
the index to slip to 49.0.
Overall, S&P Global flash U.S. Composite PMI Output Index checked in
at 53.35 in April, up from 52.3 in March, That was the highest reading since May
2022 latest reading and signaled a solid expansion in the U.S. private sector