US March non-manufacturing data:

Details:

  • employment 47.0 versus 55.6 last month - largest drop since 2008
  • new orders 52.9 versus 63.1 last month
  • business activity index 48.0 versus 57.8 last month
  • prices paid 50.0 versus 50.8 last month
  • backlog of orders at 55.0 versus 53.2 last month
  • supplier deliveries of 62.1 versus 52.4 last month
  • inventory change 41.5 versus 53.9 last month
  • inventory sentiment 47.8 versus 59.3 last month
  • new export orders 45.9 versus 55.6 last month
  • imports 40.2 versus 52.6 last month

The jump in supplier deliveries helped to boost the index but when you dig into things like new export orders and imports, you start to see the pain coming. The report said the jump in supplier delivers was due to supply problems around the virus.

Comments in the report:

  • "Significant shortages of personal protective equipment (PPE), chemical reagents, test swabs and other basic medical supplies persist. Extreme sourcing measures are required to procure necessary supplies for basic operations. Distributor allocations continue across the board." (Health Care & Social Assistance)
  • "Severe impact to operations as a result of COVID-19. Major challenges in obtaining needed supplies for first responders, including N95 masks, gowns, disinfecting products and medical supplies. As a local government, we are experiencing a significant increase in activity due to emergency-response efforts. Starting to experience inappropriate price increases for short-supply items." (Public Administration)
  • "Significant demand disruption caused by the coronavirus." (Accommodation & Food Services)
  • "The coronavirus is having an impact, but not as much as we thought it would at this point. All sectors are staying busy. Although there are many customer concerns, we are finding work-arounds and adapting to the ever-changing situation." (Construction)
  • "COVID-19 shelter-in-place order in effect. Offices closed except for essential personnel." (Educational Services)
  • "Like most businesses, we cannot fully project how the coronavirus will impact us. By displaying prudence and avoiding panic, we are trying to navigate this crisis. As human capital is our greatest expense, protecting that capital is job one. Supply chains are overstressed and will normalize only when the panic subsides." (Information)
  • "COVID-19 has greatly impacted daily operations. All staff personnel are telecommuting, and customer concerns have shifted from normal activities to preventative measures." (Management of Companies & Support Services)
  • "We are experiencing no real issues from a business perspective, although COVID-19 has forced us to reconsider elements of how our workforce gets things done." (Mining)
  • "As expected for many industries (whether manufacturing or non-manufacturing), purchasing has slowed as we evaluate the economic climate and prepare for long-term effects." (Retail Trade)
  • "The coronavirus is effecting every aspect of business." (Real Estate, Rental & Leasing)