US manufacturing stagnates as tariffs raise costs
In July, US manufacturing basically hit pause—no growth after a small bump in June.
The Federal Reserve says output stayed flat, even though there's been a 1.4% increase compared to last year.
Rising costs from tariffs are making things tougher for factories, which still power over 10% of the economy.
Car makers still struggling
Car and auto parts makers had another rough month, dropping 0.3% after an even bigger dip in June—mostly because of scheduled shutdowns for maintenance and new models.
If you take vehicles out of the picture, factory output still slipped by 0.1%.
On the bright side, sectors like electrical equipment, appliances, aerospace, and furniture actually saw solid increases, while metals and machinery lagged behind.
Broader impact of tariffs
Overall industrial production shrank by 0.1%, and factories are running below their usual capacity—now at about 76.8%.
Analysts point to tariffs on steel and aluminum as part of the slowdown; these extra costs may force longer or more broad-based shutdowns.
For anyone watching jobs or tech trends in manufacturing, it's a reminder that global trade policies can hit close to home—even if you're not working on an assembly line yourself.