US Manufacturing Contracts for the First Time in Three Years Amid China Trade War

US Manufacturing Contracts for the First Time in Three Years Amid China Trade War

The manufacturing sector was considered one of the big winners under the Trump administration, notching big gains in employment and activity. But that now appears to be nullified by the trade war. The ISM US manufacturing Purchasing Managers’ Index fell to 49.1% in August, the lowest reading in more than three years. Any reading below 50% signals a contraction. “The breadth of the weakness is troubling and tells us the economy needs some extra help from the Fed,” according to Joseph Lavorgna, chief economist at Natixis, an international asset management firm. “If monetary policymakers do not deliver, risks to the economic outlook will mount.”

 

CNBC: READ MORE