US manufacturing activity has dropped to its lowest level in five months, according to data released by the Institute for Supply Management. The institute’s manufacturing Purchasing Managers Index (PMI) fell to 48.7 in April, below the previous month’s reading of 49.
The PMI reading indicates that US manufacturing is experiencing contraction, with readings below 50 suggesting a decline in production. However, new orders increased to 47.2 in April, indicating some growth.
Industry experts say that President Trump’s tariffs are creating uncertainty for businesses and making it difficult for them to plan ahead. Jefferies US economist Thomas Simons noted that nearly all survey respondents described a state of “near paralysis” as they struggled to adapt to changing tariff policies.
The S&P Global manufacturing data also showed activity holding flat at 50.2 in April, with tariff impacts boosting input and selling costs. Gruenwald added that the key variable for the economy moving forward will be whether or not the labor market deteriorates further.
New data has shown signs of cooling in the labor market, with private payrolls growing by just 62,000 in April and job openings hitting a four-month low at the end of March. The April jobs report is expected to show 135,000 nonfarm payroll jobs added to the US economy last month.
Source: https://finance.yahoo.com/news/manufacturing-activity-hits-5-month-low-as-trump-tariffs-leave-businesses-in-state-of-near-paralysis-152727991.html