- The S&P Global April Final Composite PMI fell to 50.6, below the flash estimate of 51.2, signaling the slowest expansion since late 2023.
- The Services PMI also dipped to 50.8, missing the preliminary 51.4 reading, as cost pressures and weak export demand weighed on growth.
- Business confidence hit its lowest level since last summer amid tariff impacts and rising input costs.
A Cooling Expansion
The U.S. economy expanded at its weakest pace in 16 months in April, according to final PMI data released by S&P Global. The Composite PMI—a key gauge of private-sector activity—settled at 50.6, down from the flash estimate of 51.2 and barely above the 50 threshold separating growth from contraction. The Services PMI followed a similar trend, landing at 50.8 after a preliminary 51.4 reading.
"The numbers confirm what many businesses have been feeling—growth is slowing," said an economist familiar with the report. "Domestic demand is still propping things up, but tariffs and supply constraints are biting."
Rising Costs, Waning Optimism
Input cost inflation accelerated to multi-year highs, driven by supply chain disruptions and recent tariff policies. Export orders, meanwhile, contracted sharply as international buyers pulled back. Business optimism slumped to its lowest since mid-2024, with firms citing uncertainty over trade policy and weakening demand.
Manufacturing showed a slight uptick to 50.7, but job cuts persisted in the sector. Attempts to reach S&P Global for additional commentary were unsuccessful ahead of market close.
What’s Next?
With inflation pressures lingering and global demand softening, analysts expect marginal growth at best in the coming months. "The Fed will be watching these numbers closely," noted one trader. "If this trend holds, rate cuts could come back into play."