Pandemic Devastates Global Manufacturing in April

The COVID-19 crisis devastated manufacturing across the globe in April. The pandemic laid low virtually all economies, plunging the J.P. Morgan Global PMI to 39.8 for the steepest contraction since the financial crisis of 2008/2009. China, although still in contraction, fared the best of the nations surveyed and helped to soften the downturn. Excluding China, the global PMI was 35.8, down from 46.2 in March. Production and new orders plummeted, international trade was nearly at a standstill, supply chains were severely disrupted and employment levels fell at the quickest pace in 11 years.

Olya Borichevska, global economist at J.P. Morgan, commented: “The continued impact of the global COVID-19 pandemic caused significant disruption to industrial activity during April. Output and new orders contracted at near survey record rates as demand, international trade flows and economic sentiment were all constrained by restrictions to stop the virus spreading, company closures and shortages of material and labor. Only time will tell how permanent the damage to global supply chains is, although moves in many nations to loosen lockdowns may provide a guide over the coming weeks and months.”