Connect with us

Hi, what are you looking for?



US manufactured goods sales plunge 17.2pc in April

WASHINGTON, United States, May 28 – New orders for US manufactured goods cratered in April by 17.2 percent as the COVID-19 pandemic shut down factories nationwide, the Commerce Department reported Thursday.

That decline came after a 16.6 percent drop in March, taking sales down to $170 billion in April from $246 billion before the virus hit the world’s largest economy.

Excluding transportation, sales fell just 7.4 percent, according to the data, but transportation orders collapsed by more than 47 percent after the 43 percent plunge in March.

Struggling aerospace giant Boeing, a key part of the transportation sector, reported 31 orders in March and none in April. The company, which announced it is slashing its workforce by 10 percent and reducing production, plans to restart its Seattle-area factory next week.

Meanwhile, sales of motor vehicles and parts collapsed nearly 52.8 percent compared to March.

While manufacturing is a much smaller, though still important, part of the services-dominated US economy, it still has a heavy weight in measuring GDP.

“Further evidence of the ravaging damage from the global coronavirus recession was visible” in the data, Gregory Daco of Oxford Economics said in an analysis.

In a separate report, the Commerce Department said US GDP fell 5.0 percent in the first three months of the year, slightly worse than the 4.8 percent drop originally reported, putting an end to a decade of economic expansion.

The report pointed to the collapse in consumer spending, hotels, food service and transportation equipment, as well as exports.

Advertisement. Scroll to continue reading.

The fall was more dramatic given that the business shutdowns did not start to take effect until the final two weeks of the quarter, and government economists could not separate out the impact of the virus on the data.

But Federal Reserve Chair Jerome Powell said the collapse in the April-June quarter could be as bad as 30 percent, levels not seen since the Great Depression of the last century.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...