US economy slumps in March – already in recession

US, WASHINGTON (ORDO NEWS) — Business in the US economy plummeted as never before in March due to the corona crisis.

The joint purchasing manager index for industry and service providers fell by 9.1 to a record low of 40.5 points, as the IHS Markit announced on Tuesday, citing its monthly survey of companies.

The barometer only signals growth from 50. “The survey underlines that the United States is likely to be in a recession that will inevitably deepen,” said Markit chief economist Chris Williamson.

The service providers were particularly hard hit. Here the barometer fell to a record low of 39.1 points. The service providers make up about two thirds of the world’s largest economy.

“This should only be the beginning of the weakening US economy,” said BayernLB economist Charlotte Heck-Parsch. The decisive factor now is how the central bank (Fed) can make it easier for small and medium-sized companies to access credit.

At the same time, the congress is planning a second aid package, this time worth billions. “However, monetary and fiscal policy efforts should not change the fact that it looks bleak for the coming months,” said the economist.

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