Although not entirely surprising, the scale of the collapse in JPMorgan and IHS Markit Economics purchasing managers’ index for Global manufacturing in February is stunning.
The global manufacturing sector suffered its steepest contraction since 2009 as demand, international trade and supply chains were severely disrupted by the COVID-19 outbreak.
Output fell across the consumer, intermediate and investment goods industries, with the steepest drop at investment goods producers.
Manufacturing production and new orders registered their sharpest declines since April 2009.
The downturns in both were quickest in China, where output and new business fell at survey-record rates. Of the 31 nations for which February data were available, 15 registered a contraction of output, including China, Japan, Germany, France, Italy, Taiwan, South Korea and Australia.
Clearly, the outbreak of COVID-19 had a marked impact on supply-chains during February... Just wait for the v-shaped recovery... any minute now!