U.S. Manufacturing Contracts as Coronavirus Hits the Economy
April 1, 2020
The ISM manufacturing index fell to 49.1 in March, down from 50.1 in February. While this is a small drop, just one point, the index crossed an important threshold. A reading above 50 indicates that manufacturing is expanding, while a reading below 50 indicates contraction.
The index has been in contraction territory for six out of the last eight months.
American manufacturing activity was brought down by a steep decline in new orders and production. Prices within the sector also saw contraction.