ADVERTISEMENT
ADVERTISEMENT

Trump pledged to revive the manufacturing sector. But it just fell deeper into a recession.

President Donald Trump won over Rust Belt states in 2016 on pledges to revive American manufacturing.

toyota factory worker alabama
  • But the sector slipped deeper into a recession in November, with a key gauge of factory activity falling for a fourth straight month.
  • New orders and employment in the sector dropped at a faster pace last month.
  • Visit Business Insider's homepage for more stories .

Manufacturing slipped deeper into a recession in November, with a key gauge of factory activity falling for a fourth straight month.

The Institute for Supply Management said Monday that its factory activity index fell to 48.1 from 48.3 a month earlier, sliding back toward a decade-low seen in September. A reading below 50 indicates contraction.

New orders and employment in the sector dropped at a faster pace last month. A tit-for-tat tariff dispute between the Trump administration and China has piled onto pressure in the manufacturing sector, which has also grappled with a broader slowdown in factory activity abroad.

ADVERTISEMENT

"Global trade remains the most significant cross-industry issue," said Timothy R. Fiore, the chair of the ISM Manufacturing Business Survey Committee. "Overall, sentiment this month is neutral regarding near-term growth."

President Donald Trump won over Rust Belt states in 2016 on pledges to revive American manufacturing, arguing that tariffs would ultimately help win fairer policies for the sector. Select factories benefited from those measures in 2017, but the support was only temporary.

A spate of manufacturing companies has over the past two years requested relief from those tariffs, which have raised costs for importers and disrupted global supply chains. Manufacturers shed 2,000 jobs in September, with those losses concentrated in swing states like Pennsylvania, Ohio, Michigan and Wisconsin.

"We doubt the gap will close anytime soon, absent a resolution to the trade war," said Ian Shepherdson, the chief economist at Pantheon Macroeconomics.

The US and China announced an interim trade agreement in October, but have clashed over key economic stipulations. Manufacturing accounts for less than 12% of gross domestic product, but it is deeply tied to broader activity in the economy.

ADVERTISEMENT

See Also:

SEE ALSO: In latest sign of trade-war pain, the Trump administration announces tariff relief for dozens of Chinese products

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Here's everything to know about being a virgin on your wedding night

Here's everything to know about being a virgin on your wedding night

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

5 reasons Easter was more fun when we were children

5 reasons Easter was more fun when we were children

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

ADVERTISEMENT
ADVERTISEMENT