Services grew less rapidly due to the slowdown in demand, a result of the uncertainty caused by the Trump administration's policies, particularly in the area of trade.

The U.S. services Purchasing Managers' Index (PMI) fell to 50.8 in April from 54.4, marking the smallest increase since November 2023, S&P Global reported.

Services grew less rapidly due to the slowdown in demand, a result of the uncertainty caused by the Trump administration's policies, particularly in the area of trade.

In this sense, business confidence weakened to levels not seen in two and a half years, and job creation was minimal.

At the same time, companies noted that tariffs were proving to be a "key factor" in their rising operating expenses.

Thus, suppliers have passed on their rising costs to sales prices, which has pushed inflation up to January levels.

"Business and consumer service providers alike, and especially financial services firms, are reporting significantly weaker growth prospects [...] due to recent tariff announcements and federal spending cuts," explained Chris Williamson, S&P Market Intelligence's chief economist.

"One of the main weak points is services exports, which have been falling at an unprecedented rate since 2022, but domestic demand is also weakening as confidence declines," the analyst added, warning of the risk of "stagflation" for the sector.