Posted May 1, 2020

Manufacturing slowed considerably in April

The COVID-19 pandemic hit the manufacturing sector hard in April, as factories shut down or severely curtailed production.

The April Index from the Institute for Supply Management registered 41.5 percent, down 7.6 percentage points from the March reading of 49.1 percent.

The New Orders Index registered 27.1 percent, a decrease of 15.1 percentage points from the March reading of 42.2 percent. The Production Index registered 27.5 percent, down 20.2 percentage points compared to the March reading of 47.7 percent. 

Comments from the panel were strongly negative, with three negative comments for every one positive comment. Sentiment was clearly impacted by the coronavirus pandemic and continuing energy market recession.

"The PMI indicates a level of manufacturing-sector contraction not seen since April 2009, with a strongly negative trajectory," said Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.