U.S. private sector output growth decelerates further in April

The Markit/Flash U.S. Composite PMI Output Index hinted at a further deceleration in private sector output growth. The seasonally adjusted index dropped to 52.7 in April from 53 in March. The reading showed the weakest pace of growth since September 2016. The moderation in private sector growth showed a loss of momentum in both the service economy and the manufacturing sector, noted Markit.

Furthermore, the data for April indicated the softest growth in private sector payroll numbers since last February, led by a subdued rate of staff hiring amongst service providers. There were indications of a squeeze on operating margins in April as input price inflation reached its most robust pace since June 2015. Meanwhile, the prices charged by the U.S. private sector companies rose just marginally and at the most subdued rate since November 2016, stated Markit.