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The Markit manufacturing PMI dropped to 36.9 in April, down from 48.5 the month before and below expectations of 38. The services PMI sunk even further from 39.8 to 27, indicating greatly reduced activity in both sectors. Markit’s chief business economist Chris Williamson stated that April saw the coronavirus deal “a blow to the US economy of a ferocity not previously seen in recent history.”

An additional 4.27 million Americans filed for unemployment benefits in the week ended April 18, in line with the expectation of 4.5 million. This follows 5.23 million the week before, revised down from 5.24 million. The unemployment rate is now likely to approach 20% in the next two months.

The Philadelphia Federal Reserve manufacturing index has seen the lowest reading since July 1980, falling from -12.5 in March to -55.6 in April. Economists had forecast a reading of -37.5. The index measures business conditions in the region, highlighting the increasingly serious consequences of the coronavirus pandemic as it spreads through the US, now the global epicentre for the outbreak.

Construction of new homes in the US saw the largest monthly decline since 1984, pushed downward by the impact of the coronavirus outbreak on the housing market and the economy as a whole. Residential starts dropped 22.3% to a rate of 1.22 million vs. 1.3 million expected, an 8-month low. Permits dropped 6.8% to 1.35 million.

An additional 5.245 million Americans filed for unemployment benefits in the week ended April 11, slightly below the expected figure of 5.5 million. 22 million Americans have been laid off in the last month, with coronavirus containment procedures shutting down businesses nationwide in almost every sector.

US industrial production had the worst month since 1946, with coronavirus containment procedures shutting down manufacturers and crippling supply chains worldwide. Factory output fell 6.3% in March following a mere 0.1% drop in February, far worse than the 4.1% drop excepted. Overall industrial production including mining and utilities output also saw the worst performance since 1946, dropping 5.4% vs. 4% expected. April performance is likely to be even worse.