US Manufacturing Improves Slightly, But Remains in Deep Contraction
US manufacturing report was released a while ago, still showing a deep contraction for May
Skerdian Meta•Thursday, May 21, 2020•1 min read
Manufacturing was in trouble already last year on a global scale, due to the trade war between US and China. In the US, manufacturing was weakening but was in a much better shape than the rest of the world, since this sector fell in recession in many major economies around the globe.
Although, the coronavirus wasn’t going to spare anyone this time and manufacturing activity contracted in March and the contraction grew bigger in April, as the flash manufacturing PMI report showed. Although, the sentiment in this sector and in services increased this month. Below you can find that report, as well as the Philadelphia FED manufacturing report.
May Flash Manufacturing PMI
- Flash Manufacturing PMI May at 39.8 points vs 39.3 expected
- Flash Manufacturing PMI April stood at at 36.9 points, but was revised to 36.1
May Philadelphia FED Survey
- May Philly Fed -43.1 vs -40.0 expected
- April was -56.6 (worst since 1982)
- New orders -25.7 vs -70.9 prior
- Employment -15.3 vs -46.7 prior
- Prices paid +3.2 vs -9.3 prior
- Six-month index +49.7 vs +43.0 prior
- Prices-received vs -10.6 prior
- Inventories vs -10.2 prior
The drop in new orders is disappointing and is the spot to watch looking ahead. These numbers are all about improvement or worsening and many might have expected orders to bottom in April but they’re still getting worse, and so is employment. The six-month index improved but it’s all relative because the further you decline, the more you have to climb to get back to zero.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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