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The Institute for Supply Management (ISM) non-manufacturing production managers index (PMI) came in at 41.8 vs. 37.9 expected in April and compared to 52.5 the month before. While the reading was better than expected, the PMI is now at the lowest point in 11 years, since the end of the Great Recession. The non-manufacturing index, which measures activity in the services industry, has contracted for the first time since December 2009.

The Institute for Supply Management (ISM) PMI came in at 41.5 last month, down from 49.1 in March. While this indicates a steep contraction, the figure is better than the expected drop to 36.9. Employment sunk dramatically to 27.5, while new orders fell to 27.1.

Personal income fell 2% in March along with disposable income as the impact of the coronavirus pandemic continues to affect people’s lives and finances. Consumer spending took a major drop of 7.5%, with most households remaining indoors. This resulted in net savings of 13.1%, up from 8%, due to the drop in spending outpacing that of incomes. PCE came in at 1.3% annually and core PCE came in at 1.7%.

Initial jobless claims soared by another 3.8 million in the week ended April 25, above the expected figure of 3.5 million claims. Last week’s figures are down from the week before which registered 4.44 million claims. In the last six weeks, over 30 million Americans have lost their jobs due to the coronavirus pandemic still sweeping the nation.

The US economy shrank for the first time since 2014 with 4.8% decline vs. 3.5% decline expected in Q1. The coronavirus outbreak has dragged on all aspects of the economy, ending the 11-year period of expansion which was the longest in US history.

After rising 1.1% in February, durable goods orders plunged 14.4% in March according to the latest report from the US Commerce Department. The reading came in worse than expectations of 11.9% decline. The drop mars the worst fall since 2014, driven down by the impacts of the coronavirus outbreak and resulting oil price drop on the manufacturing sector.