Empire State manufacturing index plunges to record low in April (-78.2)

[UpInArms]

Source: Marketwatch

The numbers: The New York Fed’s Empire State business conditions index plummeted a record 57 points to -78.2 in April, the regional Fed bank said Wednesday. That’s the lowest reading on record. Economists had expected a much smaller decline to -35, according to a survey by Econoday.

Any reading below zero indicates deteriorating conditions.

What happened: New orders and shipments both declined at a record pace. Delivery times lengthened and inventories fell. Employment levels contracted at a record pace. One bright spot was that firms expect conditions to be slightly better in six months.

Big picture: This is the second straight record decline in the Empire Index as the coronavirus-related shutdown hit the factory sector hard. The prior lowest level of the index was -34.3 during the Great Recession. Economists use the regional manufacturing surveys to get a sense of activity at the national level. The Institute for Supply Management said its manufacturing index slipped to 49.1% in March from 50.1 in the prior month. It looks like more deterioration is coming.

Read more: https://www.marketwatch.com/story/empire-state-manufacturing-index-plunges-to-record-low-in-april-2020-04-15?mod=mw_latestnews

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Look out below!

[mahatmakanejeeves]

1. They have a scale that extends into negative numbers?

I wasn't expecting that. Usually those indices are centered at 100. Numbers above 100 indicate anticipated expansion. Numbers below 100 indicate anticipated retraction.

Thanks for the thread.

[bucolic_frolic]

2. Not much sense in buying other than food and necessities because

any one of us as well as those around us could be dead in a few weeks.

I'm doing what I believe is prudent meaning donating to causes I believe in, tweaking beneficiaries. Don't want to leave a whole bunch of newly acquired stuff that has to be sold or trucked to Salvation Army. Want to know I tried to improve the world and humanity's prospects going forward.

[UpInArms]

3. Industrial output in March suffers largest drop since 1946

The numbers: Industrial production fell 5.4% in March, the steepest decline since early 1946 as a result of the coronavirus pandemic, the Federal Reserve said Wednesday.

Capacity utilization fell down to 72.7% from 77%, the lowest level since the Great Recession.

Economists polled by MarketWatch expected a 4.1% decline in production and capacity utilization of 73.8%.

... snip ...

Manufacturing production fell 6.3% in March, the biggest drop since February 1946. Most major industries posted declines. Production of motor vehicles and parts declined 28%.

More at:

https://www.marketwatch.com/story/industrial-output-in-march-suffers-largest-drop-since-1946-2020-04-15?mod=mw_latestnews