Monday, February 24, 2020

Fears of the Virus

The forecasting firm IHS Markit said its indexes for manufacturers and service-oriented firms both declined in February, according to a “flash” or preliminary reading. Its services index turned negative for the first time since 2015.

The reason? Most people fear it's because of the coronavirus. The coronavirus scare is already hurting companies in the tourism and travel industries that generate lots of business from Chinese customers. Apple, for instance, warned that its sales might fall short of forecasts because it might not be able to produce and ship iPhones on schedule.

One bright spot: Most executives who were polled for IHS Markit said they think the current weakness is temporary. They expect business to bounce back before the end of the year.

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