Composite PMI Drops To 50.9, Missing Analyst Expectations

On April 23, 2024, S&P Global released U.S. PMI reports for April. The reports indicated that Manufacturing PMI declined from 51.9 in March to 49.9 in April, compared to analyst consensus of 52. Numbers below 50 show contraction.

Services PMI decreased from 51.7 to 50.9, compared to analyst forecast of 52. Composite PMI decreased from 52.1 to 50.9, missing expectations.

S&P Global commented: “Further pace may be lost in the coming months, as April saw inflows of new business fall for the first time in six months and firms’ future output expectations slipped to a five-month low amid heightened concern about the outlook.”

The report highlighted problems with inflation. S&P Global noted that manufacturing registered the steeper rate of price increases in three of the past four months. Importantly, factory cost pressures intensified in April.

U.S. Dollar Index tested session lows after the release of the weaker-than-expected PMI reports. Traders bet that the potential slowdown of the economy would force the Fed to be more dovish.

Gold rebounded from session lows and is trying to settle above the $2330 level. Weaker dollar and falling Treasury yields provided support to gold markets.

SP500 is trying to settle above the 5050 level as traders react to the PMI data. The reports may provide additional support to equity markets as Fed policy outlook serves as an important catalyst for stocks.

For a look at all of today’s economic events, check out our economic calendar.