Source: Markit Economics
Business activity in the United States dropped to a three-month low in April, on the back of the continuous increase in prices. QQQ is down 0.75%, while SPY is down 1.19%.
- The US PMI Composite Output Index slipped to 55.1 from 57.7 in March, hitting the lowest level in three months.
- The decline was attributed to the challenges such as rising inflation and the higher cost of living, along with supply chain issues and employment constraints.
- The index for services business activity also fell to a three-month low of 54.7, due to labor and supply shortages, and the hit of inflation on spending power.
- Manufacturing output climbed to a nine-month high of 57.4, led mainly by growth in output and new orders during the month.
- Manufacturing PMI also climbed to a seven-month high of 59.7, with firms expecting even greater production in the next year in the hopes of supply chain stability.
- S&P Global Chief Business Economist Chris Williamson believes the focus remains on the need to temper inflationary pressures, as signaled by survey respondents.