Economy
May 1, 2020
ISM Report on Business Shows Profound Impacts of Pandemic
Written by Sandy Williams
The ISM Report on Business dropped 7.6 percentage points to a PMI reading of 41.5 in April, indicating a sharp contraction of economic activity in the manufacturing sector. Additionally, the overall economy contracted for the first time in 131 consecutive months.
“Comments from the panel were strongly negative (three negative comments for every one positive comment) regarding the near-term outlook, with sentiment clearly impacted by the coronavirus (COVID-19) pandemic and continuing energy market recession,” said Timothy Fiore, chairman of the Institute for Supply Management Manufacturing Business Survey. “The PMI indicates a level of manufacturing-sector contraction not seen since April 2009, with a strongly negative trajectory.”
