US: Markit Services PMI drops to 26.7 in April (final) from 39.8 in March

• Markit Services PMI for US edges lower in April's final reading.
• Wall Street's main indexes cling to strong gains after PMI data.   

The IHS Markit's Services Purchasing Managers' Index (PMI) for the US slumped to 26.7 in April's final reading from 39.8 in March. This figure came in worse than the previous estimate and the market expectation of 27.

Further details of the publication showed that the Composite PMI fell to 27 in April from 40.9 to show a sharp contraction in the private sector's business activity in that period. 

Commenting on the data, "the slump in the business survey indicators to all-time lows in April indicates how the 4.8% rate of economic decline seen in the first quarter will likely be dwarfed by what’s to come in the second quarter," said Chris Williamson,
Chief Business Economist at the IHS Markit.

Market reaction

This data failed to have a negative impact on market sentiment. As of writing, major equity indexes in the US were up between 1.35% and 1.5%.