US March prelim Markit services PMI 39.1 vs 42.0 expected

Author: Adam Button | Category: News

March prelim Markit manufacturing and services PMIs

 Markit services
  • Record low for services PMI
  • Prior was 49.4 prior
  • Markit manufacturing PMI 49.2 vs 43.5 expected
  • Prior manufacturing PMI 50.7
  • Composite PMI 40.5 vs 49.6 prior
The manufacturing PMI is a surprise but the market is likely to shrug it off, similar to the German one earlier today. 

Commenting on the flash PMI data, Chris Williamson,Chief BusinessEconomist at IHS Markit,said:

"US companies reported the steepest downturn since 2009 in March as measures to limit the COVID-19 outbreak hit businesses across the country. The service sector has been especially badly affected, with consumer-facing industries such as restaurants, bars and hotels bearing the brunt of the social distancing measures, while travel and tourism has been decimated. However, manufacturing is also reporting a slump in demand, with production falling at a rate not seen since 2009, linked to either weak client demand, lost exports or supply shortages.
"Jobs are already being slashed at a pace not witnessed since the global financial crisis in 2009 as firms either close or reduce capacity amid widespread cost-cutting.
"The survey underscores how the US is likely already in a recession that will inevitably deepen further. The March PMI is roughly indicative of GDP falling at an annualised rate approaching 5%, but the increasing number of virus-fighting lockdowns and closures mean the second quarter will likely see a far steeper rate of decline."

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