US manufacturing shrinks for 8th straight month
US manufacturing just logged its eighth month in a row of shrinking, with the latest data from the Institute for Supply Management showing a PMI of 48.7—anything under 50 means things are slowing down.
Ongoing import tariffs, meant to help American factories, are actually making things tougher by dragging out delivery times and complicating new orders.
This is a big deal since manufacturing still makes up about 10% of the US economy.
Labor shortages and higher costs hit hard
Labor shortages and higher costs are making it hard for companies to keep up, especially when it comes to sourcing materials locally.
Sectors like chemicals and machinery are seeing fewer customer orders as global uncertainties and tariff changes ripple through supply chains.
Even though there was a tiny bump in new orders last month, most signs still point to more challenges ahead for US manufacturing.