- Before it was 51.7
- Manufacturing 49.9 versus 52.0 expected
- Pre-manufacturing reading 51.9
- Composite PMI 50.9 versus 52.1 previously
- April saw an overall reduction in new orders for the first time in six months
- Companies responded by cutting staff for the first time in almost four years
- business confidence fell to its lowest level since last November
- Inflation rates generally eased at the start of the second quarter, with input costs and product prices increasing less quickly at the composite level.
- However, manufacturing input cost inflation reached its highest level in a year
- Some service providers suggested that high interest rates and high prices limited demand during the month.
This last line is a good sign that the Fed does not need to raise rates further to dampen inflation/activity.
From Chris Williamson, chief business economist at S&P Global Market Intelligence:
“The U.S. economic recovery lost momentum at the start of the second quarter, with PMI flash survey respondents reporting below-trend growth in business activity in April. The pace may lose steam in the coming months, as in April new business flows fell for the first time in six months and companies’ expectations for future production fell to their lowest level for five months, amid increased concerns about the outlook.
“The more challenging business environment has prompted companies to downsize at a rate not seen since the global financial crisis, excluding the early months of pandemic lockdowns.
“The deterioration in demand and the cooling of the labor market have translated into a reduction in price pressures, with April seeing a welcome slowdown in the rates of increase in the selling prices of goods and services . “The drivers of inflation have notably changed. The manufacturing sector has now recorded the fastest rate of price rises in three of the last four months, with factory cost pressures intensifying in April amid rising raw material and fuel prices, contrasting with wage and service-related price pressures seen through much of 2023.”
The US dollar fell following this report. There is talk again of a weakening of the US economy in March/April and this could show up in this survey, which is a forward-looking measure.
This article was written by Adam Button at www.forexlive.com.
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