Economics
U.S. Factory Output Craters With ‘Fundamental Damage’ to Sectors
- ISM production, employment gauges fall to seven-decade lows
- Broader headline measure boosted by delayed deliveries
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A measure of U.S. factory output shrank in April at the fastest pace in records back to 1948, prompting a sharp reduction in manufacturing employment as the coronavirus tightened its grip on the economy.
Data from the Institute for Supply Management on Friday showed its measure of factory production plummeted more than 20 points to 27.5, while its employment index also slid to 27.5, the weakest in almost 71 years. Readings below 50 indicate shrinking activity and the latest figures indicate an economy that’s rapidly deteriorated into a recession.