US business activity growth slowed to a 16-month low in April, according to flash PMI survey data, with business expectations about the year ahead also dropping to one of the lowest levels seen since the pandemic.
Prices charged for goods and services meanwhile rose at the sharpest rate for just over a year, with an especially steep increase reported for manufactured goods, linked to tariffs.
The headline S&P Global US PMI Composite Output Index fell from 53.5 in March to 51.2 in April. The fall in the index signals a deceleration of activity growth to a 16-month low from the three-month high seen in March.
Growth of service sector business activity slowed sharply to only a modest pace, registering the second weakest expansion recorded over the past year, in response to slower order book growth.
Manufacturing output meanwhile edged back into growth after slipping into decline in March, though the expansion was only marginal.
Employment rose slightly in April, up for the fourth time in the past five months, albeit registering a smaller gain than in March and a much-reduced rate of hiring compared to the strong 31-month high seen at the start of the year.
Average prices charged for goods and services rose in April at the sharpest rate for 13 months, increasing especially steeply in manufacturing (where the rate of inflation hit a 29-month high) but also picking up further pace in services (where the rate of inflation struck a seven-month high).
Sentiment among companies about their output over the coming year fell for a third successive month, dropping sharply to register the least optimistic outlook since July 2022.