US Private Sector Activity Slows Down in April

The preliminary report by S&P Global on Wednesday highlighted a notable slowdown in the US private sector activity for April. The PMI Composite Output Index, encompassing both services and manufacturing sectors, recorded a drop to 51.2 from March's 53.5, marking a 16-month low.

Services and Manufacturing Sectors Show Mixed Signals

While the Flash US Services Business Activity Index decreased to 51.4 in April from 54.4 in March, the manufacturing PMI saw a slight improvement, standing at 50.2 compared to the previous month's 48.6.

Growing Concerns Over Government Policies

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, expressed concerns over the deteriorating business confidence. "The optimism about future business conditions has significantly waned among both manufacturers and service providers, primarily due to apprehensions regarding recent government policy announcements," Williamson noted.