HomeLive CommentsUS PMI composite rose to 36.4, GDP to decline -37% annualized in...

US PMI composite rose to 36.4, GDP to decline -37% annualized in Q2

US PMI Manufacturing recovered to 39.8 in May, up from 36.1, PMI Services rose to 36.9, up from 26.7. PMI Composite rose to 36.4, up from 27.0.

Chris Williamson, Chief Business Economist at IHS Markit, said:

“The severe drop in business activity in May comes on the heels of a record downturn in April, adding to signs that GDP is set to suffer an unprecedented decline in the second quarter.

“Encouragement comes from the survey indicating that the rate of economic collapse seems to have peaked in April. In the absence of a second wave of COVID-19 infections, the decline should moderate further in coming months as measures taken to contain the coronavirus are steadily lifted.

“However, the sheer scale of the current downturn and associated job losses, and the fact that some restrictions will need to stay in place until an effective treatment or vaccine are found, highlights how a full recovery is unlikely to be swift.

“We anticipate that GDP will decline at an annualised rate of around 37% in the second quarter, and it will take the economy two years to regain the pre-pandemic peak.”

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