The latest indications on U.S. private sector activity reveal a sharp and unexpected slowdown in the pace of growth in April 2024, marking the softest expansion since December 2023.

A positive takeaway from the flash Purchasing Managers Index (PMI) surveys released Tuesday by S&P Global is the welcome moderation in the rates of increase for selling prices in both goods and services observed in April.

Global’s Flash PMIs For April 2024: Key Takeaways:

• The U.S. Composite PMI decelerated from 52.1 to 50.9, marking a four-month low. Nevertheless, April signaled the 15th consecutive month of output increase.
• The U.S. Services PMI fell from 51.7 to 50.9, missing expectations of a rise to 52, marking a five-month low.
• The U.S. Manufacturing PMI fell from 51.9 to 49.9, falling short of the 52 forecasted, hitting a four-month low.
• Output growth moderated in accordance with weakened demand as new orders decreased for the first time in six months.
• Companies reduced employment for the first time in nearly four years, while business confidence also declined to its lowest level since last November.
• Inflation rates generally eased at the beginning of the second quarter, with both input costs and output prices rising at a slower pace overall. Manufacturing input cost inflation reached a one-year high.