Published: 2024-04-23T13:55:48.000Z
U.S. April S&P PMIs - Manufacturing and services both lose momentum
Senior Economist , North America
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April’s preliminary S and P PMIs suggest some loss of momentum in the economy entering Q2, with manufacturing falling to 49.9 from 51.9 and services falling to 50.9 frim 51.7.
The manufacturing index turns marginally negative after three straight positives which hints that the April ISM manufacturing index may struggle to sustain March’s move above 50, though the Philly Fed did provide a positive signal in April.
The S and P services index is not well correlated with its ISM counterpart. It does however appear responsive to moves in bond yields now seeing three straight slowings from January’s 52.5 which was a fourth straight improvement, as projections for Fed easing are trimmed.