Markit’s preliminary survey of the U.S. services companies indicates that the sector decelerated a bit.
The headline PMI slipped to 54.2 in April from 55.3 in March. Economists estimates the headline would climb to 55.5.
Any reading above 50 signals growth.
Here are the key points from the report:
- Business activity rises at slower pace than in March
- Staffing levels increase at weakest pace since June 2012
- Input cost inflation accelerates in April
“With the exceptions of the government shutdown last October and the weather-related disruptions in February, the rate of economic growth signalled by the flash services and manufacturing PMIs in April was the weakest since May of last year,” said Markit’s Chris Williamson.
“The surveys are running at a level broadly consistent with annualised GDP growth of 2.0%, while the employment index from the two surveys points to non-farm payroll growth sliding to around 100,000 per month.
“In the services sector, there are worrying signs for future momentum. Levels of outstanding business fell at the fastest rate since last August, and firms’ optimism about the year ahead also waned.
“These data challenge the view among many, including some key policymakers, that the recent deterioration in some of the economic data has been purely a symptom of the adverse weather at the start of the year.”