US business activity slows in April, prices rise due to tariffs, fears of inflation.

From Yahoo Finance: 2025-04-23 09:49:00

U.S. business activity slows to a 16-month low in April, with prices for goods and services rising due to tariffs. President Trump’s trade policy and immigration crackdown hurt exports and tourism. Businesses are hesitant to hire due to economic uncertainty. Confidence in future business conditions decreases.

Survey shows a drop in the Composite PMI Output Index to 51.2, the lowest since December 2023. Trump’s tariffs and trade war with China contribute to fears of inflation and economic stagnation. Investors are selling U.S. assets. Economists predict slow economic growth in the first quarter.

Federal Reserve Chair Powell warns of inflation risk from Trump’s tariff policies. Business confidence hits a low, new orders decline, and prices for goods and services rise, potentially leading to higher consumer inflation. Employment gauge drops, manufacturing orders increase, and services PMI falls. Economists forecast further decline.

Read more: US business activity moderates in April; firms demand higher prices for their products