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In its Flash U.S. PMI report, the IHS Markit announced that the Manufacturing PMI stayed unchanged at 52.4, which was slightly below the market estimate of 52.8. With the initial reaction, the US Dollar Index edged lower but was still up 0.3% on the day at 97.30.

Key quotes from the press release

  • The seasonally adjusted IHS Markit Flash U.S. Services PMI  Business Activity Index signalled a further moderation in service sector activity growth, posting down from 55.3 in March to 52.9 in April.  
  • At 52.8 in April, down from 54.6 in March, the seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index signalled the slowest increase in overall business activity since September 2016.  

Chris Williamson, Chief Business Economist at IHS Markit:

The US economy started the second quarter with its weakest expansion since mid-2016 as businesses reported a marked slowing in output, new orders and hiring.  

The April surveys are consistent with GDP rising at an annualised rate of just under 2%, with the official measure of manufacturing production remaining in decline.