5 Industrial Stocks Poised To Gain Despite Coronavirus Jitters
Zacks Investment Research | Mar 15, 2020 09:41PM ET
The rapid spread of the coronavirus globally has taken a toll on the U.S Manufacturing Sector. Per the Institute for Supply Management’s latest report, the U.S Purchasing Managers’ Index (PMI) declined to 50.1% in February 2020 from the January reading of 50.9%.
As trade tensions between the United States and China eased following the signing of a partial trade deal, PMI reading in January grew to more than 50, denoting an expansion in the manufacturing sector after continued contraction for five months. However, the coronavirus pandemic seems to have put brakes on the growth. The PMI has averaged 50.5% over the past 12 months, ranging from a low of 47.8% (December 2019) to a high of 54.6% (March 2019).
Of the 18 manufacturing industries, 14 reported growth in February. New Orders Index slumped to 49.8% in February from 52% in January. Waning demand owing to the impact of the coronavirus outbreak caused the New Order Index contraction, despite the expansion of export orders. Production Index came in at 50.3% in February, declining from 54.3% in January, highlighting two months of growth following five consecutive months of contraction. Employment Index was 46.9% in February, up from 46.6% in January. The growth is contracting for the seventh month in a row.
The World Health Organization (WHO) has officially declared the coronavirus outbreak as a Original post
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