U.S. Economy

U.S. Private Sector Growth Unexpectedly Slows In April, Marks Lowest Increase In 4 Months: 'Drivers Of Inflation Have Changed'

The latest indications on U.S. private sector activity reveal a sharp and unexpected slowdown in the pace of growth in April 2024.

The latest indications on U.S. private sector activity reveal a sharp and unexpected slowdown in the pace of growth in April 2024, marking the softest expansion since December 2023.

A positive takeaway from the flash Purchasing Managers Index (PMI) surveys released Tuesday by S&P Global is the welcome moderation in the rates of increase for selling prices in both goods and services observed in April.

Global’s Flash PMIs For April 2024: Key Takeaways:

  • The U.S. Composite PMI decelerated from 52.1 to 50.9, marking a four-month low. Nevertheless, April signaled the 15th consecutive month of output increase.
  • The U.S. Services PMI fell from 51.7 to 50.9, missing expectations of a rise to 52, marking a five-month low.
  • The U.S. Manufacturing PMI fell from 51.9 to 49.9, falling short of the 52 forecasted, hitting a four-month low.
  • Output growth moderated in accordance with weakened demand as new orders decreased for the first time in six months.
  • Companies reduced employment for the first time in nearly four years, while business confidence also declined to its lowest level since last November.
  • Inflation rates generally eased at the beginning of the second quarter, with both input costs and output prices rising at a slower pace overall. Manufacturing input cost inflation reached a one-year high.
International

Japan's Economy Skids, Clouding BoJ's Rate Hike Plans

Japan's economy fell faster than expected in the first quarter as the weak yen continued to batter consumers, throwing a fresh challenge to the central bank's push to get interest rates further away from near zero.

Investing Ideas

Nvidia will Surge Another 22%, and is Still Cheap Compared to Peers Despite Nearly Doubling this Year, Goldman Sachs Says

Nvidia (NVDA) stock still has plenty of upside even after its year-to-date rally of 81%, according to a Tuesday note from Goldman Sachs.

U.S. Economy

Fed to Stay at Current Rate Horizon Citing Inflation for Longer than Anticipated

The Federal Open Markets Committee (FOMC) concluded its two-day monetary policy meeting with a unanimous decision to let the Fed funds target rate stay at 5.25%-5.50%.