US manufacturing contracts as private payrolls post first drop since 2017

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US manufacturing contracts as private payrolls post first drop since 2017
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WASHINGTON: US manufacturing activity contracted less than expected in March, but disruptions caused by the coronavirus pandemic pushed new orders ...

WASHINGTON: US manufacturing activity contracted less than expected in March, but disruptions caused by the coronavirus pandemic pushed new orders received by factories to an 11-year low, reinforcing economists' views that the economy was in recession.

A reading below 50 indicates contraction in the manufacturing sector, which accounts for 11 per cent of the US economy. Economists polled by Reuters had forecast the index would drop to 45.0 in March.The smaller-than-expected drop in the ISM index reflected a jump in the survey's measure of supplier deliveries to a reading of 65.0 this month from 57.3 in February.

The United States has the highest number of confirmed cases of COVID-19, the respiratory illness caused by the virus, with nearly 188,000 people infected. Almost 4,000 people in the country have died from the illness, according to a Reuters tally. "Looking ahead, the timing and strength of the recovery is highly uncertain so long as major parts of the domestic economy are on virtual lockdown and external demand remains in the doldrums," said Oren Klachkin, lead economist at Oxford Economics in New York.

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