U.S. Factory Activity Shrinks for First Time in 3 Years

HayJenn

Former Staff
Jul 2014
72,406
63,478
CA
The U.S. manufacturing sector shrank for the first time in three years last month, providing the latest sign that a global manufacturing pullback is weighing on the American economy amid rising trade tensions between Washington and Beijing.

Tuesday’s Institute for Supply Management’s manufacturing index, a widely watched gauge of factory activity, fell to 49.1 in August from 51.2 in the prior month. Readings above 50 indicate activity is expanding across the manufacturing sector, while those below 50 are a sign of contraction. The latest reading marked the first contraction since August 2016, and was the lowest since January 2016.

U.S. stocks and government bond yields fell on the weak manufacturing report. The Dow Jones Industrial Average lost as much as 425 points before paring some of its declines to end down 285.26 points, or 1.1%. Investors also flocked to government bonds and gold as they fled riskier assets such as stocks. The report—coming after data pointing to contracting factory activity in the U.K., Germany, Japan and South Korea—fueled fears that a manufacturing slowdown elsewhere in the world had reached the U.S.

Trade was “the most significant issue” for the U.S. purchasing and supply executives surveyed in the monthly report, said Timothy Fiore, chairman of the ISM’s Manufacturing Business Survey Committee.

U.S. Factory Activity Shrinks for First Time in 3 Years

I remember when Trump promised 4% growth.

That does not seem possible now if you factor in manufacturing and farming.
 
Jul 2011
36,171
3,410
Tennessee
The U.S. manufacturing sector shrank for the first time in three years last month, providing the latest sign that a global manufacturing pullback is weighing on the American economy amid rising trade tensions between Washington and Beijing.

Tuesday’s Institute for Supply Management’s manufacturing index, a widely watched gauge of factory activity, fell to 49.1 in August from 51.2 in the prior month. Readings above 50 indicate activity is expanding across the manufacturing sector, while those below 50 are a sign of contraction. The latest reading marked the first contraction since August 2016, and was the lowest since January 2016.

U.S. stocks and government bond yields fell on the weak manufacturing report. The Dow Jones Industrial Average lost as much as 425 points before paring some of its declines to end down 285.26 points, or 1.1%. Investors also flocked to government bonds and gold as they fled riskier assets such as stocks. The report—coming after data pointing to contracting factory activity in the U.K., Germany, Japan and South Korea—fueled fears that a manufacturing slowdown elsewhere in the world had reached the U.S.

Trade was “the most significant issue” for the U.S. purchasing and supply executives surveyed in the monthly report, said Timothy Fiore, chairman of the ISM’s Manufacturing Business Survey Committee.

U.S. Factory Activity Shrinks for First Time in 3 Years

I remember when Trump promised 4% growth.

That does not seem possible now if you factor in manufacturing and farming.
Was there a recession after the August 2016 contraction?

No!