⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

US Manufacturing Improves Slightly, But Remains in Deep Contraction

Posted Thursday, May 21, 2020 by
Skerdian Meta • 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.

Check out our free forex signals

Follow the top economic events on FX Leaders economic calendar

Trade better, discover more Forex Trading Strategies