On Monday, the ISM (Institute of Supply Management) US manufacturing activity PMI (Purchasing Managers’ Index) data had mirrored a gradual improvement of factory activity in the United States, as the US manufacturing activity had been heaved up from an 11-year-low recorded a month earlier, marking up the prominent-most sign yet that the worst might be over for the recent downturn in the US economy, although analysts said that the pandemic’s financial fallouts would require years to reconcile amid a significantly higher unemployment rate.
Besides, as the day’s ISM data came as a shimmering ray of hope for the ailing US economy ahead of a Friday unemployment data which would likely to report the steepest plunge in employments since the ages of World War II, several analysts were quoted saying that the recent gains on factory activity would likely to be overshadowed by a magnanimous scale of slump in employment and would lead to a tepid economic growth.
ISM national factory activity crawls up from an 11-year-low as gradual recoveries on sight
Apart from that, according to the ISM (Institute of Supply Management) data released earlier on the day, the ISM US factory activity rose to a figure of 43.1 in May from a reading of 41.5 in April, which happened to be the index’s lowest level since the era of Great Financial Depression of 2007-2009, nonetheless, the ISM index for US factory activity, accountable for roughly 11 per cent of entire US economic activities, was still being held much lower than the benchmark 50.0 level that separates a recession from a growth.
Meanwhile, adding that the worst might be over for the sharply contracting US manufacturing activities, a Chief Economist at MUFG in New York said followed by the release of ISM national factory activity data, “Today’s report on the manufacturing sector represents good news that hints the economy is turning the corner as the states reopened in May. It will not be a quick recovery for sure, but at least the worst is over. ”