It has been a year now that the United States and China are in an intense trade tussle. Needless to say, that the trade war has impacted the manufacturing sector deeply in August. Seven industries in the manufacturing sector that depend on trade have contracted.
Manufacturing supply chain that includes steelmakers to heavy equipment companies have been impacted by tariffs. While nine sectors have performed quiet well and reported growth, let us take a look at them.
On Sep 3, Institute of Supply Management (ISM) reported that its index of national factory activity came in at 49.1 in August, while in July it was 51.2.
The ISM reading was lowest for the first time since January 2016, and has declined persistently for the last five months. The factory activities have been witnessing contraction in Europe, Japan, China and now United States.