The Purchasing Managers’ Index (PMI) dropped to 41.5% in April, its lowest level since April 2009. A PMI over 50% indicates the manufacturing economy is expanding, but the sector contracted for the second month in a row. Three other indices also declined: new orders, production and employment. However, the supplier deliveries index and the inventories index both rose. The COVID-19 pandemic has left business executives pessimistic about the near term future. Some respondents to the survey expressed concern about their ability to continue operations.
Key Takeaways:
- Both the Purchasing Managers’ Index and the overall economy have declined for the second month in a row.
- All of the subindexes related to the PMI have been affected strongly by the coronavirus pandemic.
- Experts also are pessimistic about the near future because of the coronavirus.
“The PMI shows the manufacturing sector contracted at a level not seen since April 2009”
