ISM Manufacturing PMI dropped -1.0 from 50.1 to 49.1, above expectation of 44.3. Looking at some details, new orders plunged -7.6 from 49.8 to 42.2. Production dropped -2.6 from 50.3 to 47.7. Employment dropped -3.1 from 46.9 to 34.8. Supplier deliveries was the main component that kept headline PMI down slightly, up 7.7 from 65.0 to 57.3.
It should be noted that supplier deliveries is the only ISM index that is inversed. That is, a reading of above 50 indicates slower deliveries. The high reading was primarily a production of coronavirus related supply problems.
ISM also said: “Comments from the panel were negative regarding the near-term outlook, with sentiment clearly impacted by the coronavirus (COVID-19) pandemic and energy market volatility… “The coronavirus pandemic and shocks in global energy markets have impacted all manufacturing sectors.”.
