Forex News

US economy contracts at fastest pace in a decade

US economy contracts at fastest pace in a decade

The U.S. economy reported a contraction at the fastest pace in a decade in April, as the government lockdown negatively affected both businesses and households.

The Composite PMI, including both manufacturing and services sectors, fell to the lowest level since late 2009 to 27.4 in April from March’s reading of 40.9. That was even worse than the financial crisis and the euro area debt crisis.

“Services companies registered the steepest rate of decline in the survey’s history, while manufacturers recorded the sharpest fall in sales since the depths of the financial crisis in early-2009.,” according to Markit.

Despite the sharp fall, the composite reading is considered better than U.K. (12.9) and euro area (13.5).   

As of 14:05 GMT, the dollar traded near the session’s open at 100.53 after hitting a high of 100.83 and a low of 100.32.

Share Article