PMI e
  • Prelim was 51.4
  • Prior was 54.4
  • Composite PMI 50.6 vs 51.2 prelim and 53.5 prior -- weakest since Sept 2023
  • Slower activity growth was linked to similarly weaker gains in new work during April
  • Expansion in staffing was 'marginal'
  • The rate of inflation eased considerably from March’s one-and-a-half year high to its weakest of 2025 so far

Overall, sentiment was at its lowest level for two-and-a-half years and amongst the weakest since the height of the pandemic in 2020.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence

"While tariff announcements mean manufacturing dominates the news, a worrying backstory is developing in the vastly larger services economy, where business activity and hiring have come closer to stalling in April amid plunging business confidence.
"Business and consumer facing service providers alike, and especially financial services firms, are reporting markedly weaker growth prospects, citing intensifying uncertainty over the economic outlook amid recent tariff announcements and ongoing federal spending cuts.
"A key area of weakness is slumping exports of services, which is now falling at rate not seen since 2022, but domestic demand is also reportedly waning as confidence slides lower. "
Higher prices paid for imports due to tariffs are also driving up service sector firms’ costs, feeding though to higher prices, notably in consumer-facing industries such as restaurants and hotels.
"The resulting bottom line from the services sector is a heightened risk of stalling growth and rising inflation, or stagflation."
Source: Forex Live