Markit's US services PMI touch weaker than expected

Data from Markit pointed to a modest rebound in business activity across the US service economy in April.

The flash US Services PMI came in at 52.1 from 51.3 the month before, above the 50 mark that separates contraction from expansion but a touch below consensus estimates of 52.3.

Adjusted for seasonal influences, the flash US Composite PMI output index printed at 51.7 in April, up a little from March’s 51.3 and the highest reading since January.

Markit’s chief economist, Chris Williamson, said: “The upturn in the rate of growth of business activity and increased inflows of new orders suggest the economy should see GDP rise at an increased rate in the second quarter, but growth is clearly far more fragile than this time last year.

“Viewed alongside the recent poor performance of the manufacturing sector, which reported its worst month since October 2009, the survey suggests the economy grew at an annualized rate of just 0.8% at the start of the second quarter, only marginally above the pace signalled for the first quarter.”