U.S. manufacturing skids to 11-year low in April as orders sink: ISM

[turbinetree]

Source: Reuters

BUSINESS NEWS MAY 1, 2020 / 10:07 AM / UPDATED AN HOUR AGO

WASHINGTON (Reuters) - U.S. manufacturing activity plunged to an 11-year low in April as the novel coronavirus wreaked havoc on supply chains, supporting analysts’ views the economy was sinking deeper into recession.

The Institute for Supply Management (ISM) said on Friday its index of national factory activity dropped to a reading of 41.5 last month from 49.1 in March. That was the lowest level since April 2009, just a few months before the Great Recession ended. A reading below 50 indicates contraction in the manufacturing sector, which accounts for 11% of the U.S. economy.

Economists polled by Reuters had forecast the index falling to 36.9 in April. The smaller-than-expected drop in the ISM index was because the survey’s measure of supplier deliveries surged to a reading of 76.0 last month from 65.0 in March.

A lengthening in suppliers’ delivery times is normally associated with a strong economy and increased customer demand, which would be a positive contribution. But in this case slower supplier deliveries indicate supply shortages related to the coronavirus pandemic and not stronger demand.

Read more: https://www.reuters.com/article/us-usa-economy-manufacturing/u-s-manufacturing-skids-to-11-year-low-in-april-as-orders-sink-ism-idUSKBN22D5M0

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It took a ego driven reality fake to drive the best economy in decades into the ground because of his pettiness to to be liar and blaming everyone except himself for his outright malignant ego of being a lunatic, and if the orange fatNixon, Pence, Pompeo, Esper, Kraninger, Kushner, Ludlow, Chao, Mnunchin, corporations, oligarchs, and anyone else think's that this is just going to bounce back magically on some false premise that you have to re-open things just to make buck, when you have no fucking testing to the virus, to show the true numbers of this criminal enterprises complete and utter failure of how many people in this country are infected ....................you have another thing coming down the pike...........

[mountain grammy]

1. Complete and utter failure.

and he makes it look so easy, thanks to republicans.

[DENVERPOPS]

4. I wonder if

they counted the huge amount of manufactured goods that Jared at TRUMP INC has pilfered from across the nation......

[bucolic_frolic]

2. I would so so so stock up on critical parts/supplies that are replaced frequently

It's all going to disappear once Trump alienates China

[progree]

3. Does this mean the Dow is going up 500 or 1000 points because it wasn't as bad as expected?

Seems like that's been the pattern since March 20 -- any report that says the economy is crawling in the gutter is another big boost for the stock market because it's better than slithering in the gutter.

The Institute for Supply Management (ISM) said on Friday its index of national factory activity dropped to a reading of 41.5 last month from 49.1 in March. ...

Economists polled by Reuters had forecast the index falling to 36.9 in April.

Edited to add as I post this edit 1138 am ET -

Dow down 485 (-1.99%) while the S&P 500 is down 2.34% (equivalent to a Dow drop of 570 in percentage terms), so it will take awhile for the market to absorb the "good" news.