April S&P Global final US services PMI 55.6 vs 54.7 prelim

• Prelim was 54.7
• Prior was 58.0
• Composite 56.0 vs 55.1 prelim
• Output and new orders rise steeply despite growth easing
• Input costs and output charges increase at record paces
• Rate of job creation accelerates to strongest for a year

This comes just ahead of the ISM services survey at the top of the hour.

Chris Williamson, Chief Business Economist at S&P Global, said:

“Alongside the acceleration in manufacturing growth recorded by the S&P Global PMI in April, the sustained solid performance of the service sector points to GDP growth returning in the second quarter.

"Although the service sector lost some momentum in April, this merely reflects pay-back from the surge in spending seen at the end of the first quarter, when Omicron-related virus containment measures were eased.

"It’s clear that growth could be even stronger if activity was not still be constrained by supply chain bottlenecks and labor availability issues. Domestic demand remains buoyant among both households and businesses in spite of current inflationary pressures, and exports are being boosted by pent-up pandemic demand as global travel restrictions are eased. Exports of services grew in April at the fastest rate since data were first collected in 2014.

"The consequence of demand running ahead of supply is higher prices, with average charges levied for services rising at a sharply increased and unprecedented rate in April following a record increase in firms’ costs. Enjoying strong demand, firms were increasingly able to pass on higher energy, materials and staff costs to customers, indicating an economy that continues to run hot."

This is the kind of thing that will make the Fed even more cautious, it has inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term written all over it.