US trade deficit widens as pandemic plummets US service sectors


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US trade deficit widens as pandemic plummets US service sectors

On Tuesday, the 5th of May 2020, US service sector data released by the ISM (Institute of Supply Management), had been another vindication of a vivid demonstration of a US economy which had been drowning deeper in to a recession, as US service sector contracted for the first time in ten and a half years last month, while an increase in US trade deficit had intensified last month amid a 74-year-low manufacturing activity alongside a sharp drop in US goods’ orders.

Besides, according to Tuesday’s (May 5th) US Commerce Department data, the US trade deficit was widened by as much as 11.6 per cent to $44.4 billion in March, the index’s biggest climb since the December of 2018, while ISM (Institute of Supply Management) non-manufacturing activity index fell to a figure of 41.8 in April from a reading of 52.5 in March, marking up the index’s first shrinkage since December 2009.

On top of that, as Washington’s broad-based efforts to ease lockdown appeared to be failing to ward off the financial fallouts of the pandemic and pointing towards a severe disruption in global flow of goods alongside services, a senior economist at Moody’s Analytics in West Chester, Pennsylvania, Ryan Sweet said on Tuesday (May 5th) followed by the release of ISM US service sector data, “We continue to expect that the apex of the impact of COVID-19 on the U.S. economy occurs this quarter, with GDP falling around 30% at an annualized rate.