The IHS Markit Services Purchasing Managers’ Index (PMI) rose to 44.5 in April from March’s 38.1. That said, the index remained entrenched well below the 50.0 no-change threshold, signaling a sharp deterioration in business conditions from the previous month.
April’s downbeat reading chiefly reflected weaker demand conditions which drove a marked decline in new business. New orders fell due to weakening customer purchasing power amid the introduction of international sanctions and as interest rates rose. Meanwhile, the rate of input price inflation was the second-sharpest on record, prompting services providers to substantially increase output charges. Lastly, business confidence softened and employment levels fell again in April, as outlook uncertainty increased.
Meanwhile, the S&P Global Composite Output Index came in at 44.4 in April, up from March’s 37.7.
FocusEconomics panelists project private consumption to slump 14.1% in 2022, which is from last month’s projection. For 2023, panelists see private consumption falling 1.7%.