US April Service PMI Preliminary at 51.4…Below Market Expectations

Son Min

Summary

It was reported that the US April Service PMI preliminary figure recorded 51.4, falling short of the expected 52.8.
This is a lower figure than last month's final figure, indicating a contraction in the US service industry.
It was evaluated that the slowdown in growth continues due to decreased export-related demand, especially in travel and tourism.

The preliminary figure for the US April Service Purchasing Managers' Index (PMI) fell short of market expectations.

According to the PMI report released by S&P Global on the 23rd (local time), the preliminary figure for the US April Service Purchasing Managers' Index was 51.4, below the market expectation of 52.8. The announced service PMI index is lower than last month's final figure (54.4), indicating a contraction in the US service industry.

Chris Williamson, Chief Economist at S&P, stated, "The service sector, particularly export-related demand such as travel and tourism, has slowed down," and "The positive outlook of companies on the service business environment over the next year has significantly deteriorated."

PMI uses 50 as a baseline to gauge whether the service industry is expanding or contracting. The preliminary PMI is released before the final PMI at the end of the month and is used as an indicator to quickly assess the economic situation.