| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Composite Index | 51.2 | 51.2 to 51.2 | 50.6 | 53.5 |
| Services Index | 51.4 | 51.4 to 51.4 | 50.8 | 54.4 |
Highlights
The S&P Global US Composite Purchasing Managers' Index came in at 50.6 in April, down from 53.5 in March signaling a minuscule increase in activity.
The US Services PMI Business Activity Index recorded 50.8 in April, declining from 54.4 in March, and below expectations of 51.4 in the Econoday survey pf forecasters.
[T]ariffs were reported by firms to have been a key driver of higher operating expenses through a rise in supplier charges, the report said. Service providers increased their own selling prices in response, with inflation the strongest since January.
Overall, [u]ncertainty over federal policies, especially trade, was reported to have limited demand growth and weighed on business expectations, which slumped to its lowest level for two-and-a-half years.
The uncertain trading environment had an especially notable impact on foreign demand, with new business from abroad slumping in April to the greatest degree since November 2022, the report added.
The US Services PMI Business Activity Index recorded 50.8 in April, declining from 54.4 in March, and below expectations of 51.4 in the Econoday survey pf forecasters.
[T]ariffs were reported by firms to have been a key driver of higher operating expenses through a rise in supplier charges, the report said. Service providers increased their own selling prices in response, with inflation the strongest since January.
Overall, [u]ncertainty over federal policies, especially trade, was reported to have limited demand growth and weighed on business expectations, which slumped to its lowest level for two-and-a-half years.
The uncertain trading environment had an especially notable impact on foreign demand, with new business from abroad slumping in April to the greatest degree since November 2022, the report added.
Market Consensus Before Announcement
No revision is the call from 51.2 in the April flash, down from 53.5 in March.
Definition
US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.
Description
Investors need to keep their fingers on the pulse of the economy because it indicates how various types of investments will perform. The Markit Services PMI provides advance insight into the services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of various markets. The stock market likes to see healthy economic growth which generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.
The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.
The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.
