Economic activity in the U.S. manufacturing sector shrank last month, and the overall economy contracted after 131 consecutive months of expansion, says the latest ISM® (Institute of Supply Management) report.
The ISM Report On Business says the April PMI – a measure of economic activity within the U.S. manufacturing industry – registered 41.5%, down 7.6% from March. This is the lowest reading in 12 months as well as the lowest reading going back to April 2009’s 39.9%.
“The coronavirus pandemic and global energy market weakness continue to impact all manufacturing sectors for the second straight month” said Timothy R. Fiore, Chair of ISM Manufacturing Business Survey Committee. “The PMI® indicates a level of manufacturing-sector contraction not seen since April 2009, with a strongly negative trajectory.”
The report lists capacitors and resistors as electronic commodities in short supply.
The Purchasing Managers Index (PMI) is a measure of economic activity, and an indicator of prevailing trends within in the U.S. manufacturing sector, based on a monthly survey of supply-chain managers across 18 industries. The value and movements in the PMI and its components can provide useful insight to business decision makers, market analysts, and investors, and is a leading indicator of overall economic activity in the U.S.
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