US manufacturing activity slows down in April
The output growth of the American private sector slowed down to a seven-month low in April, as both the service economy and the manufacturing sector experienced a loss of momentum, according to data released by IHS Markit on Friday.
The seasonally adjusted Flash Composite PMI Output Index declined to 52.7 from 53 recorded in March, while the Services Business Activity Index eased to 52.5 from 52.8. Flash Manufacturing PMI decreased to 52.8 from 53.3, while the Manufacturing Output Index edged down to 53.4 from 54.3.
New business growth in the service sector remained moderate in April, while backlogs of work continued declining and staff hiring slowed due to subdued demand growth and lower volumes of incomplete work. Still, service providers remained upbeat about their prospects for growth over the next year, while intensifying cost pressures pushed input prices further up.
The slowdown in manufacturing activity came mainly due to slower rates of output and new order growth, although job creation slightly rebounded in April and factory gate charges rose on the back of higher input costs.