x
Breaking News
0

U.S. business activity eases to slowest expansion in 7 months - Markit

Economic IndicatorsApr 21, 2017 09:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Markit composite PMI drops to 7-month low as service and manufacturing activity eases

Investing.com – Business activity in the U.S. private sector unexpectedly weakened in April to its slowest pace in seven months, dampening optimism over the American economy, according to preliminary data released on Friday.

In a report, market research group Markit said that its flash services purchasing managers’ index (PMI) fell to 52.5 in April, from the prior month’s reading of 52.8.

Analysts had expected the reading to recover to 53.0.

Services make up approximately 80% of the U.S. economy which makes the data key for interpreting growth.

Markit also said that its flash manufacturing purchasing managers’ index (PMI) dropped to 52.8 in April from the prior month’s final reading of 53.3.

Analysts had expected an increase to 53.5.

The composite PMI, including activity in both sectors, slipped to 52.7 in April from the previous month’s reading of 53.0. That was its weakest reading since September 2016.

On the indices, a reading above 50.0 indicates expansion, below indicates contraction.

“The PMI data suggest the US economy lost further momentum at the start of the second quarter,” Markit chief economist Chris Williamson said.

“The surveys are signaling a GDP growth rate of 1.1% after 1.7% in the first quarter,” he added.

Williamson pointed out that the manufacturing sector showed signs of growth slowing further from the two-year high reached at the beginning of the year, despite export orders lifting higher.

He also noted that the labor market continued to soften with a step-down in the pace of hiring consistent with the creation of around only 100,000 non-farm payrolls.

“The survey responses indicate that some froth has come off the economy since the post-election bounce seen at the end of last year,” Williamson explained.

“However, with inflows of new business picking up slightly in April and business optimism about the year ahead also brightening, there’s good reason to believe that growth could revive again in coming months,” he concluded.

After the report, EUR/USD was trading at 1.0701 from around 1.0703 ahead of the release of the data, GBP/USD was at 1.2797 from 1.2788 earlier, while USD/JPY traded at 109.11 compared to 109.09 before the release.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 99.82, compared to 99.81 ahead of the report.

Meanwhile, U.S. stocks were trading slightly lower after the open. The Dow 30 slipped 10 points or 0.05%, the S&P 500 lost 2 points, or 0.11%, while the tech-heavy Nasdaq Composite fell 6 points or 0.11%.

Elsewhere, in the commodities market, gold futures traded at $1,283.50 a troy ounce, compared to $1,284.00 ahead of the data, while U.S. crude oil changed hands at $50.52, compared to $50.38 earlier.

U.S. business activity eases to slowest expansion in 7 months - Markit
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email