U.S. manufacturing contracts; private payrolls post first drop since 2017

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U.S. manufacturing contracts; private payrolls post first drop since 2017
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U.S. private payrolls post first decline in two-and-a-half years

WASHINGTON - U.S. manufacturing activity contracted less than expected in March, but disruptions caused by the coronavirus pandemic pushed new orders received by factories to an 11-year low, reinforcing economists’ views that the economy was in recession.

“Manufacturing is back in recession, joining the rest of the economy,” said Chris Rupkey, chief economist at MUFG in New York. “With only a few actual data points so far, the results indicate this is looking more like a depression than a garden-variety recession.” More than 80% of Americans are under some form of lockdown as states and local governments try to contain the spread of the virus, bringing the nation to an abrupt stop. The United States has the highest number of confirmed cases of COVID-19, the respiratory illness caused by the virus, with nearly 188,000 people infected. Almost 4,000 people in the country have died from the illness, according to a Reuters tally.

Economists had forecast private payrolls would fall by 150,000 jobs in March. The smaller-than-expected decline was due to establishments being surveyed in mid-March, before many states and local governments ordered residents to stay at home unless on essential business.

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