The ISM PMI for March 2020 declined to 49.1 because of the covid-19 impacts. The prices declined by 8.5 to 37.4 as producers used more local raw material instead. The new order was down significantly by 7.6 to 42.2 because of declines in new export and local orders which showed that consumer spending was pulling back.
The customers’ inventories increased because producers were replenishing their stocks to meet the backlog of order. However, the actual production decreased to 47.7 (-2.6) as the producers had no confidence in the future outlook that had resulted in a reduction in employment. The supplier’s deliveries went up to 65 because of slower delivery time since the sub-index had an inverse relationship with the delivery period.
In conclusion, this ISM PMI was reporting deflation, declining production, weakening local consumption and deteriorating employment situation.
2 comments:
https://www.cnbc.com/2020/04/02/weekly-jobless-claims.html
The ISM PMI employment subindex had predicted the worsening labour figure.
https://finance.yahoo.com/news/march-2020-jobs-report-nonfarm-payrolls-coronavirus-unemployment-201234973.html
This outcome is predicted by the ISM PMI employment sub-index.
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