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S&P Global Flash US PMI: Manufacturing and Services up in April

By:
James Hyerczyk
Updated: Apr 25, 2023, 13:52 GMT+00:00

US Manufacturing & Services sectors grow in April, optimism tempered by inflation & shift to services.

US PMI Reports

Highlights

  • US manufacturing sees first improvement in six months 
  • Service providers experience quickest increase in output in a year 
  • Manufacturers optimistic, but inflation and shift towards services are concerns

US Manufacturing PMI for April Rises to 50.4: First Improvement in Six Months

The S&P Global Flash US Manufacturing PMI for April rose to 50.4, indicating the first improvement in operating conditions for goods producers in six months, although the overall upturn was only marginal.

The increase was supported by stronger growth in output and employment, alongside a renewed rise in new orders. The rise in new sales signaled stabilizing demand conditions across the sector.

However, a further downturn in foreign client demand continued to dampen overall expansion, as new export orders fell at a solid pace. The rate of cost inflation increased at the quickest pace since November, and selling prices increased sharply.

Manufacturers expressed optimism in the outlook for output over the coming year. However, there were concerns regarding inflation and a shift towards services among customers following the end of the pandemic remain.

US Services Business Activity Index for April Posts 53.7: Quickest Increase in Output in a Year

The S&P Global Flash US Services Business Activity Index for April posted 53.7, up from 52.6 in March, indicating the quickest increase in output for a year, supported by greater employment and stronger demand. New business grew for the second successive month, driven by improved marketing initiatives, greater domestic demand, and the acquisition of new customers.

The rate of cost inflation at service providers quickened in April.  Selling prices increased at a sharper pace, responding to higher cost burdens. Pressure on capacity and a modest accumulation of backlogs of work led to the fastest rise in employment at service providers since July 2022.

Business confidence picked up, but concerns regarding inflation and pressure on costs from rising interest rates weighed on sentiment.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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