FX.co ★ US private sector growth eases to seven-month low in April

Private sector growth in the United States eased to a seven-month low in April. IHS Markit said its flash composite PMI fell to 52.7 from 53 last month.

The reading below 50 indicates contraction of activity, while the reading above signals expansion.

The service-sector PMI dipped to 52.5 in April from March’s 52.8. Both indicators hit the lowest levels in seven months.

According to Markit chief economist Chris Williamson, PMI data signals the US economy lost further momentum at the beginning of the second quarter.

The data suggests the GDP has advanced by 1.1% after posting 1.7% growth in the first quarter.

The services sector showed the weakest pace of growth. Meanwhile, the manufacturing sector showed signs of slowing from a two-year high hit at the beginning of the year, despite an increase in export orders.

The PMI print was also affected by employment statistics. The data showed a significant decline in the pace of job creation in March. Thus, non-farm payrolls rose by just 100,000 jobs.