U.S. manufacturing recession deepens as Philadelphia Fed Index crashes in April

The U.S. manufacturing recession deepens.

The Federal Reserve Bank of Philadelphia’s Manufacturing Index crashed to 31.3 in April, the worst reading since May 2020. It also represented the eighth consecutive monthly contraction, with negative readings for new orders, shipments, employment, and orders received.

Here is a chart looking at the Philadelphia Fed Manufacturing Index:

Contrary to President Joe Biden’s claim of a robust manufacturing sector, the industry has been in a recession since the fall, with the leading manufacturing purchasing managers’ indexes (PMIs) in contraction territory for several straight months.

Even on the jobs front, the private payroll measurements and the Bureau of Labor Statistics (BLS) data show employment losses in manufacturing.