Preliminary data
issued by S&P Global on Tuesday revealed that U.S. private sector business
activity continued to grow in early April,
albeit at a softer pace than in March, reflecting
a weaker expansion in services activity and no change in manufacturing activity.
According to
the report, S&P Global flash U.S. Composite Purchasing Manager's Index
(PMI) Output Index came in at 50.9 early this month, slightly down from 52.1 in
March. The latest reading continued to indicate an expansion in business
activity at the U.S. companies albeit at the softest pace since last December.
A reading above 50 signals an expansion in activity, while
a reading below this level signals a contraction.
S&P Global
flash manufacturing PMI fell to 49.9 in April from 51.9 in the previous month.
The latest print pointed to the broadly unchanged business conditions in
manufacturing after three months of improvement. Economists had forecast the manufacturing PMI to advance
to 52.0.
Meanwhile, S&P
Global flash services PMI checked in at 50.9 in April, down from 51.7 in March.
The latest reading indicated the softest
increase in activity across the sector since November 2023. Economists had expected the services
PMI to rise to 52.0.