US composite PMI sinks to 2009 recession lows

Thursday, 23. April 2020 15:45

The Composite Purchasing Managers' Index in the United States deeply contracted in April compared to the previous month to stand at 27.4, IHS Markit stated in its preliminary report released on Thursday. The output's fall, which came at the fastest pace in the survey's history, was highly caused by the coronavirus-related halts in the country's economy.

The preliminary report said the Services Business Activity Index reached in April the worst position since 2009 by landing at 27.0. The Manufacturing PMI concurrently plunged to 36.9, also marking an 11-year low, while the Manufacturing Output Index came in at 29.4.

Commenting on the disastrous data, IHS Markit's Chief Business Economist Chris Williamson said "the COVID-19 outbreak dealt a blow to the US economy of a ferocity not previously seen in recent history," adding that "the deterioration in the flash PMI numbers indicates a rate of contraction exceeding that seen even at the height of the global financial crisis."

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Breaking the News / ND