U.S. Manufacturing Slumps, Stimulus Package & Oil Prices Run Out of Steam

Unsurprisingly, U.S. manufacturing has taken a significant hit in the current environment. Regional Fed surveys are showing levels not seen since 2009, with New York posting a nearly 80% contraction this month. Still, production numbers declined less overall in March than might’ve been expected…could the same possibly hold true for April? The massive wave of unemployment claims has continued, though in slightly lower volume than previous weeks—is this reason for hope or simply a sign of overwhelmed state offices? This could also quickly reverse, since the ($349 billion) Paycheck Protection Program stimulus for small businesses is already tapped… OPEC+ has reached a historic deal to slash production in a bid to salvage unstable prices, but investors don’t appear reassured and prices have continued to sink. Meanwhile, China’s economy looks to have sprung back to life as demand for key resources such as steel and coal reignites. Unfortunately, air pollution looks to have tagged along for the ride. While a good sign for the economy, scientists are bracing for secondary waves of infection as activity picks up… Finally, new cases look to have peaked in Europe and we hope to keep it that way!