New York Business Activity Recovers From Lows, Outlook Improves -- ISM
June 02 2020 - 10:14AM
Dow Jones News
By Xavier Fontdegloria
Business activity in the New York metropolitan area bounced off
record lows in May, while the six-month outlook recovered strongly,
data from a survey taken by the Institute for Supply Management
showed Tuesday.
The ISM-New York Report on Business' current business conditions
index rose 15.2 points to 19.5 in May, up from an all-time low of
4.3 in April.
Despite the improvement, the reading is still well below the
50-mark that separates economic expansion from contraction.
"In May, New York City purchasing managers reported across the
board increases as gradual reopenings signal the beginning of the
end of the coronavirus pandemic shock," the report said.
The six-month outlook index, seen as a reliable short-run guide
for current business conditions over time, increased 21.6 points to
48.0 in May, approaching expansion territory and up from the
all-time low of 26.4 in April. The index was at 53.8 in February,
the last month before the coronavirus-related shutdown effect hit
the economy.
All company subindexes improved compared with April's readings,
but still signalled significant contractions in activity.
The employment index rose 4.7 points to 33.9, slightly up from
the 29.2 registered in April.
The improvement in the quantity of purchases index was more
significant, rising to 28.3 in May from 8.3 in April, data showed.
Top line and forward revenue guidance both rose from the historic
lows registered in April.
The prices paid index, which moved the least among April's
fallout, rose 12.7 points in May to a four-month high of 60.9, the
only index in expansion territory.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
June 02, 2020 09:59 ET (13:59 GMT)
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