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

The preliminary report from S&P Global on Wednesday revealed a significant slowdown in the US private sector activity for April. The PMI Composite Output Index, which measures both services and manufacturing business activity, fell to 51.2 from 53.5 in March, marking a 16-month low.

Service and Manufacturing Sectors Show Mixed Signals

The Flash US Services Business Activity Index experienced a decline, dropping to 51.4 in April from 54.4 the previous month. In contrast, the manufacturing sector showed slight improvement, with the manufacturing PMI rising to 50.2 from 48.6 in March.

Growing Concerns Over Government Policies

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, highlighted growing concerns among businesses. "Confidence about business conditions in the year ahead has deteriorated sharply," Williamson noted, pointing to worries over recent government policy announcements as a key factor.