• Analytics
  • News and Tools
  • Market News
  • U.S. manufacturing activity contracts as estimated in May - HIS Markit
Market News
01.06.2020, 13:59

U.S. manufacturing activity contracts as estimated in May - HIS Markit

The latest report by IHS Markit revealed on Monday the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index (PMI) stood at 39.8 in May, up from April’s recent low of 36.1 and unrevised from the earlier released “flash” figure”. The reading signaled second-steepest deterioration in manufacturing operating conditions since April 2009.

Economists had forecast the index to stay unrevised at 39.8.

According to the report, production and new orders fall substantially due to weak client demand amid the COVID19 outbreak. Employment dropped substantially amid signs of excess capacity. In addition, lower input buying and weaker overall demand conditions put pressure on suppliers to lower their prices. Consequently, input costs fell again, in turn helping manufacturers to cut their output charges at a record pace as firms sought to remain competitive.

Chris Williamson, Chief Business Economist at IHS Markit noted: “With increasing numbers of companies restarting production, we should see some improvements in the output trend in coming months, and it was reassuring to see signs of the downturn already starting to ease in May, suggesting April was the eye of the storm as far as the production collapse is concerned.”

© 2000-2020. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Live Chat E-mail
Choose your language / location