Industry in the USA falls again for the 6th month in a row amid the tariff

The US manufacturing sector again contracted in August for the sixth consecutive month, while factories continue to face the impact of ‘tariff’ imposed by President Donald Trump.

What happened

The Institute of Supply Management (ISM) reported that its PMI, an indicator that measures economic health of the manufacturing sector, recorded 48.7 last monthan increase compared to July 48.0, but below estimates of 48.9, according to Bloomberg data. A reading of PMI below 50 indicates contraction in the industrial sector, which accounts for 10.2% of the US economy.

Despite the increase in new requests, the drop in production and the challenges with tariffs maintained the sector in general contraction. A contact in the electrical equipment industry told ISM, a report from Yahoo Finance, which raised prices by 24%. He points out, however, that these increases will only compensate for tariffs, which means that their margins will not improve as a result.