US manufacturing shrinks for first time in three years

General Motors employees work on the chassis line as they build the frame power train and suspension onto the truck’s body on June 12 at the Flint Assembly Plant in Flint Mich. Jake May  The Flint Journal files

US manufacturers must be asking themselves just now: If President Trump is our friend, what would an enemy look like?

New tariffs on Chinese goods took effect over the USA holiday weekend.

The manufacturing sector in the United States contracted last month for the first time in three years, an industry report said Tuesday. Consumption (measured by the Production and Employment Indexes) contracted at higher levels, contributing the strongest negative numbers (a combined 5.6-percentage point decrease) to the PMI, driven by a lack of demand. The Dow erased 1.08 percent, the S&P 500 was down 0.69 percent, and the Nasdaq lost 1.11 percent.

The Institute for Supply Management's purchasing managers index fell to 49.1 in August, weaker than all forecasts in a Bloomberg survey of economists, data released on Tuesday (Sept 3) showed.

The report's key metric, the PMI, fell 2.1% to 49.1 (a reading of 50 or higher indicates growth), following a 0.5% decrease in July and 0.4%, 0.7%, and 2.7% declines in June, May, and April, respectively.

A global softening in demand, worsened by an increasingly high-risk trade war between the USA and China, appears to be hurting American manufacturers. More than half of the public comments from companies surveyed by ISM pointed to economic uncertainty as a drag on their businesses.

ISM reported that nine of the 18 manufacturing sectors it tracks saw growth in August, including: Textile Mills; Furniture & Related Products; Food, Beverage & Tobacco Products; Wood Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Machinery; Miscellaneous Manufacturing; and Chemical Products.

"There is little better evidence of the cost to the domestic economy stemming from the Trump administration's policies than the sharp decline in new export orders that coincides with Trump's increased tariffs announced in August", Holt said.

"This is a grim report", said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Tuesday's ISM data, compiled from a monthly survey of purchasing and supply executives across the US, added to a picture of softening activity in USA manufacturing. Caterpillar, which is seen as an American bellwether when it comes to the impact of global trade and construction, fell 1.8%.

The 30-year bond last rose 7/32 in price to yield 1.9639%, down from 1.973% late on Friday. -China trade war continued to cause uncertainty. While surveys of purchasing managers showed mixed results in China, manufacturing activity declined across Japan, Taiwan, and South Korea. Those tariffs are targeted at consumer goods and will likely raise prices for American consumers. US markets were closed on Monday for Labor Day. The United States now joins the euro zone, Japan, the United Kingdom and China, which have always been experiencing a contraction in factory activity.

Anemic demand for U.S. goods, with persistent drops in export orders, produced a "notable decrease" in business confidence, as indicators for production, employment and order backlogs all fell, according to the Institute for Supply Management.

Related News:

  • Boris Johnson loses major vote on Brexit, snap elections likely

    Boris Johnson loses major vote on Brexit, snap elections likely

    Britain is now scheduled to leave the European Union on October 31, whether or not it has agreed a divorce deal with Brussels. All of that advance has occurred among Leave voters, including many who were hitherto supporting Nigel Farage's Brexit Party.
    Hurricane Dorian expected to impact Nova Scotia this weekend

    Hurricane Dorian expected to impact Nova Scotia this weekend

    It was centered 25 miles (40 kilometers) northeast of Freeport - roughly the same distance from the city as at 9 a.m. Hurricane Dorian as seen by the European Space Agency's Copernicus Sentinel-3 satellite at 11:16 a.m.
    SpaceX Starlink satellite almost  collides with European satellite

    SpaceX Starlink satellite almost collides with European satellite

    Satellites have only previously had to move out of the path of old satellites or fragments from previous collisions. Mr Krag said: "Based on this we informed SpaceX, who replied and said that they do not plan to take action".
  • American Airlines 'confident' Boeing 737 Max will fly in December

    American Airlines 'confident' Boeing 737 Max will fly in December

    If the planes don't get federal clearance to resume operations this year, Boeing could suspend production altogether. American said it has been canceling about 115 flights a day, or about 1.5% of its daily summer schedule.
    Johnson will seek to trigger snap general election after Commons defeat

    Johnson will seek to trigger snap general election after Commons defeat

    His stance has infuriated many longtime, prominent party members. "It is using political manipulation, bullying and lies". The course remains unpredictable. "It is a bill that, if passed, would force me to go to Brussels and beg an extension".
    Jonas Brothers surprise teen who missed concert due to cancer treatment

    Jonas Brothers surprise teen who missed concert due to cancer treatment

    YOU made my crappy chemo session into something incredibly special and unforgettable", Lily later wrote with a group photo. Some of Priyanka's fans pointed out that she made a mistake with Nick's age when she shouted out 27 as his age.
  • Teen blinded by diet of chips, fries, bread

    Teen blinded by diet of chips, fries, bread

    Unfortunately, glasses won't help either because optic nerve damage can't be corrected with lenses. Researchers in Bristol , England determined that he suffered from nutritional optic neuropathy .
    Pak will not initiate war with India: Imran Khan

    Pak will not initiate war with India: Imran Khan

    Kashmir has been divided between India and Pakistan since their independence from Britain in 1947. Two of the three wars they have fought have been over it.
    In big bank reform, 10 merged into 4

    In big bank reform, 10 merged into 4

    I want to assure every union in everyone of these banks to please recall what I have said last Friday". Allahabad Bank and Indian Bank will be merged to create a business of Rs. 8.08 lakh crore.
  • Serena grabs 100th US Open win as record title nears

    Serena grabs 100th US Open win as record title nears

    Swiss 13th seed Belinda Bencic faces good friend Donna Vekic, the 23rd seed from Croatia, in the other last-eight clash. A couple of winners and an ace allowed Svitolina to finish it out on her serve. "But I love what I do".
    China-US trade war: China lodges WTO trade complaint against US

    China-US trade war: China lodges WTO trade complaint against US

    In retaliation, China began imposing new duties on United States crude oil, the latest escalation in their trade war . Deal would get MUCH TOUGHER!' the president tweeted.
    Walmart ends all handgun ammunition sales

    Walmart ends all handgun ammunition sales

    However, Walmart will continue to sell long barrel deer rifles and shotguns and much of the ammunition for those guns. Walmart has made decisions to scale back its gun and ammunition offerings before.

Most liked

Prince Harry claims private jet travel is to protect family
'I sent her a card via her financial adviser in LA but received no acknowledgment, ' he says. "And I've always offset my CO2". The scheme was widely praised on social media, though British broadcaster Piers Morgan scoffed at the irony on Twitter.

Cancer Beats Heart Disease as Leading Cause of Death in Wealthy Countries
For this paper, the research involved 162,534 adults aged 35 to 70 from 21 countries who were followed for a median of 9.5 years. "As cardiovascular disease decreases in many countries, mortality from cancer will probably become the leading cause of death".

Hong Kong’s government to meet amid bill withdrawal talk
Three men, aged between 21 and 42, were taken to Kwong Wa Hospital late on Tuesday, a hospital authority spokeswoman said. There have also been protests at the local airport that caused the cancellation of hundreds of flights in August.

Rams to Sign QB Jared Goff to Four-Year Extension
According to NFL Network's Ian Rapoport , Goff's extension is worth $134 million and includes $110 million guaranteed. After the Rams traded up from the 15th pick to take him No. 1 overall, he had seven winless starts in 2016.

Huawei accuses U.S. of using cyberattacks, threats to disrupt business
In addition to national security concerns , the USA is reportedly investigating new allegations of intellectual property theft. According to the Huawei document, eight employees, several of them USA citizens, were involved in the incidents.

First Aerial Photos of Show Marsh Harbour in Bahamas in Ruin
The hurricane is forecast to turn more to the north by Wednesday evening and then turn to the north-northeast by Thursday. Dorian is expected to decrease in strength over the next 48 hours, but remain extremely unsafe .

Alexis Sanchez shares his experience after leaving Arsenal to join Manchester United
And if he can maintain this pace all throughout the season then there's no way that Ole will call back Alexis Sanchez . Nevertheless, despite his struggles at the club, Sanchez revealed that he has no regrets joining Manchester United.

Harry Potter books banned from Catholic school for fear of student spells
She does mention in passing that this is hardly the first instance of school leaders taking exception to Harry Potter books . Despite Reehil's decision to ban the books, Hammel claims that the school district does not like to engage in censorship.

Google Pixel phones are supposedly getting the new Android 10 today
If you still don't see it and are desperate for the latest software, you can sideload an OTA or flash a factory image via ADB. There is also a new feature called Focus Mode which allows you to minimize distractions and pause preselected apps.

Kim Kardashian gets backlash for one of North West's accessories
Cousins North and Penelope were joined by friend Hayden and Tracy Romulus' daughter, Ryan. Of their other kids, Kim said, '[Chicago], it's still too early to say.

Ariana Grande is suing Forever 21 for allegedly plagiarizing her likeness
Ms Grande said the firm, which has stores in more than 50 countries around the world, approached her in 2018 about endorsement. Grande's representatives to discuss the possibility of having her endorse the fast fashion Forever 21 brand given that Ms.

'American Idol' Contestant Haley Smith Killed In A Motorcycle Crash
Smith, DOB 11/07/1992, her local address was on State Street in Millinocket, originally from Utah. A former American Idol contestant died Saturday in a motorcycle crash in Millinocket.

Android 10 comes to Google’s Pixel phones
It was earlier revealed by Canadian network carrier Rogers that Android 10 will be coming to these devices starting from today. Thanks to this feature, Android 10 devices can enhance sound and filter background noise when headphones are plugged in.

Tropical Storm Fernand expected to form as Hurricane Dorian churns near Florida
Tuesday about 40 miles northeast of Freeport, Grand Bahama Island, and about 110 miles east-northeast of West Palm Beach, Florida. By Wednesday morning, Dorian is forecast to still be at Cat 2 strength and off the coast of Florida near Jacksonville.

Kiko Alonso agrees to reduce salary cap hit in Saints-Dolphins trade
That deal included two other players and draft picks, among them first-round selections in 2020 and 2021 going to Miami. Today, Ian Rapoport revealed their plan to trade Kiko Alonzo to the Saints in exchange for Vince Biegel.