US Private Sector Activity Hits a 16-Month Low in April

The preliminary report from S&P Global on Wednesday highlighted a concerning downturn in the United States PMI Composite Output Index, which measures both services and manufacturing business activity. The index fell to 51.2 in April, down from 53.5 in March, marking the lowest point in 16 months.

Services and Manufacturing Sectors Show Mixed Signals

The Flash US Services Business Activity Index experienced a notable decline, dropping from 54.4 in March to 51.4 in April. On a slightly brighter note, the manufacturing PMI showed some improvement, rising to 50.2 in April from 48.6 in the previous month.

Growing Concerns Over Government Policies

"Confidence about business conditions in the year ahead has deteriorated sharply," stated Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. He pointed out that this pessimism spans across both manufacturers and service providers, largely due to increasing worries about the impact of recent government policy announcements.