the us economy expanded in april at a slower pace than in the previous month as activity cooled in the services sector amid recordhigh inflation pressures according to data from a purchasing managers survey released friday the sp global flash composite output index decreased to 551 in april from 577 in march a threemonth low the index which gauges both the manufacturing and services sectors points to a strong expansion of activity as a reading above 500 suggests growth the april pmi surveys point to the upturn losing some momentum compared to the strong rebound seen in march said chris williamson chief business economist at sp global the data indicate that the us gross domestic product grew at an annualized rate of around 3 he said activity in both the manufacturing and services sectors continued to expand but services providers reported a slowdown compared with march and manufacturers registered a stronger expansion over the month the services sector saw a softer expansion in april due to the impact of high inflation on consumer spending the report said the flash us services pmi fell to 547 in april from 580 in march a threemonth low economists polled by the wall street journal expected the indicator to come in at a higher 579 many businesses continue to report a tailwind of pent up demand from the pandemic but companies are also facing mounting challenges from rising inflation and the cost of living squeeze as well as persistent supplychain delays and labor constraints mr williamson said on the contrary goods producers reported an uptick in activity on the back of rising demand the flash us manufacturing pmi increased to 597 in april from 588 the in march a sevenmonth high and above economists estimates of 582 aprils data also indicated a record rise in input costs amid higher costs for raw materials fuel transportation and wages the majority of firms passed along higher costs burdens to clients via increasing prices the report said firms surveyed also reported a decline in business confidence softer expectations were broadbased as respondents highlighted increasing concerns about higher costs and evidence of less robust demand sp global said