US service sector activity growth at three-month high in April

Markit’s final US business services purchasing managers’ index printed at 52.8 in April, up from 51.3 in March and ahead of consensus estimates for a reading of 52.1.

The latest reading was the highest since January and signalled a moderate expansion of service sector business activity.

Adjusted for seasonal influences, the final Markit US Composite PMI Output Index rose to 52.4 in April from 51.3 in March, signalling the fastest expansion of private sector output since January.

Chris Williamson, chief economist at Markit, said: “The PMI surveys show the economy continuing to pick itself up after the stagnation seen in February, with growth accelerating for a second successive month in April. However, the rate of expansion remains tepid, reliant on sluggish growth in services as manufacturers report a stalling of production.

“The surveys are consistent with economic growth picking up from the 0.5% seen in the first quarter to a mere 1.0% at the start of the second quarter, suggesting the bounce-back from the weak start to the year is far from impressive.”