The latest report by IHS Markit revealed on Friday the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers' Index (PMI) stood at 36.1 in April, down from 48.5 in March and down from the earlier released "flash" figure of 36.9. The reading signaled the worst contraction in the manufacturing sector in over eleven

years.

Economists had forecast the index to stay unrevised at 36.9.

According to the report, the drop in headline indicator was driven by the steepest decline in output in the series history, which was widely linked to factory and other business closures following the implementation of COVID-19 related emergency public health measures. Meanwhile, new orders, employment and inventories fell at sharpest rates since the global financial crisis. In addition, both input costs and output charges decreased significantly as companies and their suppliers offered discounts to boost sales.