U.S. technology sector output growth improves in April, financial sector decelerates

The U.S. technology sector output growth improved in April after a deceleration in the prior month, showed the latest U.S. Sector PMI data. Activity grew at a stronger rate that was widely consistent with the trend seen in the first quarter. The pace of growth in technology output matched that seen for basic materials, which includes chemicals and resources, and was more rapid that those seen throughout the remaining five sectors monitored.

The most subdued rise in business activity was recorded in the financial sector. The pace of growth alleviated to the slowest in the current 13-month sequence of growth. Furthermore, the U.S. Financials Business Activity Index recorded its fifth-lowest level on record since its inception in October 2009.

Consumer goods also performed relatively weak in April. Output grew at the slowest pace since last June as new order growth alleviated to a 27-month low. The sector had earlier recorded the most robust growth of all seven categories in the first quarter on average, noted Markit.