US Economic Activity Shows Signs of Cooling

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 from 53.5 in March. This marks the lowest level since September 2023, according to the final report released by S&P Global on Monday.

Services Sector Faces Significant Slowdown

The Services PMI Business Activity Index also experienced a decline, dropping to 50.8 in April from 54.4 in March, reaching its lowest point since November 2023. This downturn highlights growing concerns within the services economy, which plays a pivotal role in the US economic landscape.

Expert Weighs In on Economic Concerns

"While tariff announcements have put manufacturing in the spotlight, a concerning trend is emerging in the much larger services economy. April saw business activity and hiring nearly stall, accompanied by a sharp drop in business confidence," remarked Chris Williamson, Chief Business Economist at S&P Global.