The US manufacturing sector continued its sluggish year in August.<\/p>\n
Data out Tuesday from the Institute for Supply Management showed<\/a> the ISM’s manufacturing PMI came in at 48.7 last month, an increase from the reading of 48 seen in July but below estimates for a reading of 48.9, according to Bloomberg data. Readings of less than 50 on the index indicate a contraction in activity in the sector.<\/p>\n This marked the sixth straight month of contraction in the US manufacturing sector, according to the ISM’s reading.<\/p>\n The new orders index within the ISM’s report, however, rose to 51.4, indicating expansion, and marked a strong uptick from the 47.1 seen in July. The production index fell to 47.8 in August from 51.4 in July.<\/p>\n “In August, U.S. manufacturing activity contracted at a slightly slower rate, with new orders growth the biggest factor in the 0.7-percentage point gain of the Manufacturing PMI,” said Susan Spence, chair of the ISM’s survey committee. “However, since production contracted at a rate nearly equal to the expansion in new orders, the Manufacturing PMI increase was nominal.”<\/p>\n Respondents to the ISM’s survey widely cited tariffs as putting pressure on their planning, sales, and costs.<\/p>\n Read more: 5 ways to tariff-proof your finances<\/a><\/p>\n One contact in the electrical equipment industry told the ISM they’ve raised prices by 24% so far, but these increases will only offset tariffs, meaning their margins won’t actually improve as a result.<\/p>\n “In two rounds of layoffs, we have let go of about 15 percent of our U.S. workforce,” this contact said. “These are high-paying and high-skilled roles: engineers, marketing, design teams, finance, IT and operations. The administration wants manufacturing jobs in the U.S., but we are losing higher-skilled and higher-paying roles. With no stability in trade and economics, capital expenditures spending and hiring are frozen. It\u2019s survival.”<\/p>\n Read more: The latest news and updates on Trump’s tariffs<\/a><\/p>\n