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Saturday, May 30, 2020 3:28:50 PM EDT

Ism Index Updated 01-May-20 10:41AM ET
The ISM Manufacturing index for April registered a 41.5% reading ( consensus 39.0%), marking the lowest level since April 2009. The headline number was better than expected, but when you look within the report, it was mostly bad.

The New Orders Index dropped to 27.1% from 42.2%. This is the lowest reading since December 2008.

The Production Index fell to 27.5% from 43.8%. This is the lowest reading since records began in January 1948.

The Employment Index declined to 27.5% from 43.8%. This is the lowest reading since June 1949.

The Backlog of Orders Index decreased to 37.8% from 45.9%. This is the lowest reading since March 2009.

The Prices Index dipped to 35.3% from 37.4%. This is the lowest level since January 2016.

The key takeaway from the report is that the better-than-expected reading was a function of a sizable uptick in the index for supplier deliveries (to 76.0% from 65.0%) that is the result of supply chain disruptions and an uptick in the index for inventories (to 49.7% from 46.9%), which is really an indication of weak demand as inventory is sitting around longer because of weak demand. Other key indexes, like new orders, production, employment, and backlog of orders all tanked.
Total Index41.549.150.150.947.8
Export Orders35.346.651.253.347.3
Prices paid (not seas adj)35.337.445.953.351.7