US Composite PMI Drops to Lowest Since September 2023

The United States Purchasing Managers' Index (PMI) Composite Output Index, a key indicator of economic health combining services and manufacturing sectors, fell to 50.6 in April. This marks a significant decline from March's 53.5, hitting its lowest point since September 2023, as reported by S&P Global.

Services Sector Shows Signs of Stalling

In a concerning development, the Services PMI Business Activity Index also dropped to 50.8 in April from 54.4 in March, reaching its lowest since November 2023. "The services economy, much larger than manufacturing, is showing alarming signs of slowing down," noted Chris Williamson, S&P Global's Chief Business Economist.

Economic Confidence Takes a Hit

Williamson further highlighted, "April's data reveals a plunge in business confidence, with activity and hiring nearing a standstill." This downturn in the services sector, overshadowed by manufacturing news due to recent tariff announcements, raises red flags for the broader US economy.