US Business Activity PMI at 50.8 in April 2026

US business activity growth recovered slightly in April 2026 after slowing to near-stagnation in March 2026, according to S&P Global data. 8 in March, marking a 2-month high.

The April 2026 PMI data is consistent with the US economy struggling to manage annualized growth in excess of 1 percent. Orders for services including travel, tourism, and financial products barely rose in April 2026, S&P Global reported. In manufacturing, survey respondents reported 'panic' and 'emergency' buying ahead of price hikes and supply shortages in April 2026.

' The outbreak of war in the Middle East occurred before April 2026. Prices paid picked up in the March 2026 ISM survey. Prices are spiking higher in April 2026 for energy and a wide variety of goods and services, Williamson said.

' Higher inflation followed the Middle East war as of April 2026. The overall pace of expansion remained subdued, most in the services economy where demand faltered due to the war causing hesitancy for spending among both household and business customers, with surging prices and the prospect of higher borrowing costs acting as further deterrents.

In manufacturing, an expansion of output and orders could be partly traced to the building of safety stocks, with respondents reporting concerns echoing problems seen during the pandemic.

The vast service sector acted as the principal drag on growth. Balancing the risks of inflation lifting sharply higher against the underlying weakness of economic growth presents policymakers with a growing dilemma. Separately, UK consumer confidence fell to its lowest level in more than two years as of April 2026, according to the Financial Times.

The Middle East war darkened the outlook for UK spending and economic growth as of April 2026. Higher inflation following the Middle East war contributed to these concerns.