US business activity cools in April; inflation measures mixed

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Manufacturing,S&P Global,Services Sectors

S&P Global said on Tuesday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 50.9 this month from ...

FILE PHOTO: Matt Arnold, CEO of Look Trailers, tours the company's utility trailer manufacturing facility in Middlebury

The slowdown reflected weaker rates of growth in both the manufacturing and services sectors, with activity easing to three- and five-month lows, respectively. That in turn meant employment, which the Fed is watching closely for indications of a drop off, fell for the first time since June 2020, with the reduction focused on services.

The Fed meets next week and is expected to leave its policy rate unchanged in the current 5.25%-5.50% range. Last week, a chorus of Fed officials backed away from signaling at least one rate cut this year, instead saying only that recent data meant monetary policy needs to be restrictive for longer. Manufacturing entered contraction territory, with the survey's flash manufacturing PMI slipping to 49.9 this month from 51.9 in March. New orders shrank slightly while growth in employment slowed, albeit modestly, and supply chains showed signs of spare capacity. The survey's flash services sector PMI dipped to 50.9 in April from 51.7 in the prior month.How Toxic Is Trump? Republican Group's Hidden Camera Reveals Uncomfortable Truth.

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