US ISM manufacturing index dropped to 41.5 in April, down from 49.1, but beat expectation of 36.7. That’s, nonetheless, the lowest reading since April 2009. Also, the 7.6 pts decline is the largest one-month fall since October 2008.
Looking at some details, new orders dropped -15.1 to 27.1. Production dropped -20.2 to 27.5. Employment dropped -16.3 to 27.5. Supplier deliveries rose again by 11.0 to 76.0. New export orders dropped -11.3 to 35.3. Of the 18 manufacturing industries, only two reported growth in April (Paper Products; and Food, Beverage & Tobacco Products). 15 reported contractions.
“Comments from the panel were strongly negative (three negative comments for every one positive comment) regarding the near-term outlook, with sentiment clearly impacted by the coronavirus (COVID-19) pandemic and continuing energy market recession”.
