US April Services PMI Final at 50.8, Below Market Expectations

The final reading of the United States' April Services Purchasing Managers' Index (PMI) fell short of market expectations.

According to the PMI report released by S&P Global on the 5th (local time), the final reading of the US April Services Purchasing Managers' Index was 50.8, below the market expectation of 51.4.

The announced Services PMI index recorded a lower figure than last month (54.4), indicating that the US service industry is contracting compared to March.

S&P Global evaluated, "The Services PMI remained above 50, maintaining growth," but added, "The growth rate fell significantly compared to March, recording the lowest since November 2023." Furthermore, they noted, "One of the causes of the slowdown in growth is the uncertainty due to tariff policies."

Chris Williamson, Chief Economist at S&P, analyzed, "The increase in import prices due to tariffs is significantly increasing the cost burden on the service sector," and "The service sector is facing a growing risk of stagflation, where growth stagnation and price increases occur simultaneously."

Meanwhile, PMI uses 50 as a baseline to gauge whether the service industry is expanding or contracting.