The word there in the hebrew (rah) that was translated as evil, means disaster as a form of judgment in that verse by context itself. Even in the KJV itself, the word is also translated as trouble, calamity and affliction in other verses.
Isaiah 45:5-7 "I am the Lord, and there is no other; Besides Me there is no God. I will gird you, though you have not known Me; 6 That men may know from the rising to the setting of the sun That there is no one besides Me. I am the Lord, and there is no other, 7 The One forming light and creating darkness, Causing well-being and creating calamity; I am the Lord who does all these,"
The NASB and NKJV translate as calamity, the NIV as disaster, and the RSV as woe (trouble).
The context itself has nothing to do with a moral sense.