- media@moneyinfocus.news
U.S. private sector activity showed a modest rebound in April, according to preliminary data released by S&P Global, as companies navigated the early economic effects of geopolitical tensions in the Middle East.
The flash U.S. Composite PMI rose to 52.0, marking a three-month high and improving from 50.3 in March, which had been the weakest reading since August 2023. The data indicates a return to expansion territory, though the pace of growth remains restrained.
The services economy, which represents the bulk of U.S. output, returned to marginal growth with a reading of 51.3, up from 49.8 in March. However, underlying demand conditions remained weak.
New business inflows expanded at the slowest pace in two years, weighed down by a continued decline in export demand. The data suggests that while domestic conditions stabilized slightly, external demand pressures persist.
In contrast, manufacturing output posted a stronger performance, rising to 55.7, the highest level in four years.
However, the increase was partly attributed to inventory accumulation, as firms moved to secure inputs amid concerns over supply shortages and rising costs—rather than a clear signal of sustained demand strength.
Cost dynamics deteriorated notably during the month. Input cost inflation accelerated sharply, while supplier delivery times lengthened at the fastest rate since mid-2022.
These pressures translated into the largest increase in average selling prices since July 2022, highlighting renewed inflation risks across both goods and services sectors.
Employment growth across the private sector remained only marginal, suggesting that firms are still cautious in hiring despite the return to expansion territory.
While April’s data signals a recovery in headline activity, the underlying composition points to a more fragile environment. Weak services demand, rising costs, and supply chain disruptions continue to cloud the outlook.
Source: S&P Global
