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US manufacturing PMI falls to the lowest since 2009

UK manufacturing PMI falls to the lowest since 2009

US ISM manufacturing PMI showed a drop to the lowest level since April 2009 as the government restrictions to lower the spread of the Covid-19 weighed on the labor market.

The manufacturing sector PMI gauge came in at 41.5 in April, down from 49.1, but came better than forecasts of 36.7. Any reading below the 50 mark indicates the sector is in contraction.

Separately, the IHS Markit’s manufacturing PMI confirmed a fall to 36.1 in April, the lowest in more than 11 years, compared to 48.5 in March and the flash reading of 36.9.

Next week, eyes will focus in the U.S. non-farm payroll for April, which will reflect the extent of damage caused to the labor market with the beginning of the first quarter.

As of 14:20 GMT, the dollar index extended its drop for a sixth straight session to 98.85, set for a weekly decline. 

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