Daily Commentary BY THE CURVE TEAM –

Data Shows the Impact of Containment Measures

24th of April, 2020

Unsurprisingly, the continuing flow of data releases in the last 24 hours shows an increasingly clear picture of how large the impacts of shutdown measures are.

Over the last 24 hours we have seen releases on Global PMI’s and US jobless claims, which both continued to show the immediate impacts of lockdown measures. The data for PMI’s showed the sectors of the global economy being hit hardest, d rather than the size of the impact.

The services sectors appears to bearing the brunt of the shutdown. Whilst that does seem curious with construction and manufacturing holding up to some extent, it could be the case that this a flow on effect rather than direct result of the containment measure. Businesses still operating are likely focussing on very core functions, with spending on things like professional services for marketing and the like are more of an afterthought.

US jobless claims continued to grow in the latest release. There are now more people that have claimed unemployment benefits in the US over the past 5 weeks than there are people in Australia. Without the large social safety net of measures we have in Australia, it is likely this will continue for some time in the US.

Matthew Dunshea

Client Relationship Manager