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5 May 2015
US service sector expands at a slower rate in April
FXStreet (Mumbai) - The seasonally adjusted final Markit US Services Business Activity Index printed at 57.4 in April, compared to 59.2 in March. The actual figure missed the preliminary estimate of 57.8.
The seasonally adjusted final Markit US Composite PMI Output Index posted 57.0 in April, down from 59.2 in March and the lowest reading for three months.
The rate of service employment growth accelerated for the fourth month running and was the strongest since June 2014. The input cost inflation picked up further from the near five-year lows seen at the start of 2015. The rise in input cost led to the fastest rise in prices charged by service sector companies for seven months in April.
As per Chris Williamson, Chief Economist at Markit, “Robust service sector growth adds to evidence that the economy is far from stalling, as indicated by the GDP numbers seen at the start of the year, supporting the Fed’s view of the economy growing at a ‘moderate’ rate. The robust growth and hiring, as well as the upturn in prices, keeps alive the possibility of the Fed hiking rates later this year, perhaps as early as September if the data flow impresses in coming months.”
The seasonally adjusted final Markit US Composite PMI Output Index posted 57.0 in April, down from 59.2 in March and the lowest reading for three months.
The rate of service employment growth accelerated for the fourth month running and was the strongest since June 2014. The input cost inflation picked up further from the near five-year lows seen at the start of 2015. The rise in input cost led to the fastest rise in prices charged by service sector companies for seven months in April.
As per Chris Williamson, Chief Economist at Markit, “Robust service sector growth adds to evidence that the economy is far from stalling, as indicated by the GDP numbers seen at the start of the year, supporting the Fed’s view of the economy growing at a ‘moderate’ rate. The robust growth and hiring, as well as the upturn in prices, keeps alive the possibility of the Fed hiking rates later this year, perhaps as early as September if the data flow impresses in coming months.”