April's PMI Composite Output Index Decline

The preliminary report from S&P Global on Wednesday highlighted a significant slowdown in the US economy, with the PMI Composite Output Index dropping to 51.2 in April from 53.5 in March, marking a 16-month low. This index measures both services and manufacturing business activity, indicating a broader economic deceleration.

Sector-Specific Performance

The Flash US Services Business Activity Index saw a decline to 51.4 in April from 54.4 in March. In contrast, the manufacturing sector showed slight improvement, with the PMI rising to 50.2 in April from 48.6 in March, suggesting a mixed performance across different sectors of the economy.

Growing Concerns Over Government Policies

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, expressed concerns over the deteriorating business confidence. "Confidence about business conditions in the year ahead has deteriorated sharply, with both manufacturers and service providers growing increasingly worried about the impact of recent government policy announcements," Williamson noted.