U.S. service sector PMI slumps to record low in April

The IHS Market flash purchasing managers index for services in April fell to a record low, while the manufacturing PMI weakened to the lowest level in 11 years.

The flash services PMI fell to 27 from 39.8 in March while the manufacturing PMI dropped to 36.9 from 48.5.

Any reading below 50 indicates worsening conditions. The “flash” reading is based on approximately 85% of the final number of replies received each month.

What happened: The cancellation of orders has led firms to reduce their workforce at the start of the second quarter. Input prices have dropped at the fastest pace on record. Business confidence turned pessimistic for the first time since the series was started in 2012.