62.2 F
Fort Worth
Thursday, November 26, 2020
News US manufacturing growth slows in June for 3rd straight month

US manufacturing growth slows in June for 3rd straight month

Other News

Exxon’s oil slick

Exxon Mobil is slashing its capital spending budget for 2020 by 30% due to weak demand caused by the COVID-19 pandemic and a market...

Folk music’s Mark Twain: 7 Essential tracks from John Prine,

NEW YORK (AP) — Some people, the songs just come out of them. For nearly half a century, they tumbled out of John Prine...

Tarrant County records another COVID-19 death

Tarrant County Public Health (TCPH) on Wednesday, April 8 reported that a resident of Euless has died as the result of the COVID-19 virus....

Tradition stymied: A year unlike any since WWII for Augusta

The Masters is so intertwined with Augusta, they added an extra day to spring break.You see, the first full week of April isn't just...

WASHINGTON (AP) — U.S. factory activity grew at a slower pace in June for the third straight month as measures of new orders and inventories fell.

The Institute for Supply Management, an association of purchasing managers, said Monday that its manufacturing index slipped to 51.7 last month from 52.1 in May. Any reading above 50 signals an expansion.

While the sector is still growing, the report pointed to an ongoing weakening in U.S. manufacturing. Trade fights with China, Europe and Mexico, as well as an increase in the dollar’s value, have cut into U.S. exports and increased uncertainty for American manufacturers.

A measure of new orders dropped to 50, which means they were unchanged. Manufacturers are also holding fewer supplies, a sign they are worried that demand could slow further.

“It’s concerning,” said Tim Fiore, chair of the ISM’s manufacturing survey committee. “This is going down faster than I would like.”

The ISM surveys purchasing managers at manufacturing firms, nearly half of whom said that trade policy was negatively affecting their businesses in some way.

“Tariffs are causing an increase in the cost of goods, meaning U.S. consumers are paying more for products,” a chemical manufacturer told the ISM.

A measure of new export orders was just 50.5, suggesting overseas demand is barely growing. Overall order backlogs are also shrinking, and customers’ inventories, while still declining, are doing so more slowly. When manufacturers’ customers hold larger stockpiles, that means they order fewer goods from factories.

There were some positive signs: Production and employment increased at a faster pace in June.

President Donald Trump has postponed two of his largest, most recent tariff threats, but that hasn’t fully removed the threat to manufacturers. He agreed over the weekend to hold more trade talks with China, rather than impose import taxes on $300 billion of Chinese imports. He also delayed an across-the-board 25% duty on all imports from Mexico, which he threatened to impose in May.

Yet those threats still loom and are forcing many manufacturers to rethink their supply chains.

“The situation is crazy, driving a huge amount of work (and) costs, as well as potential supply disruptions,” a computer and electronics company told ISM.


Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

JRB Fort Worth chosen for main operating base for C-130J aircraft

Naval Air Station Joint Reserve Base Fort Worth has been selected as a main operating base for eight C-130J aircraft at the 136th Airlift...

Texas again sets record for new coronavirus infections as testing also sees sustained highs

Texas health officials reported more than 14,000 new coronavirus infections Wednesday in what appeared to be an all-time high for daily cases. The record comes...

Americans risk traveling over Thanksgiving despite warnings

Millions of Americans took to the skies and the highways ahead of Thanksgiving at the risk of pouring gasoline on the coronavirus fire, disregarding...

Texas shut down bars to slow the spread of coronavirus — but allowed thousands to open through a restaurant loophole

Need to stay updated on coronavirus news in Texas? Our evening roundup will help you stay on top of the day's latest updates. Sign...

Tarrant County DA’s office changing how it handles misdemeanor marijuna cases

The Tarrant County Criminal District Attorney’s Office is changing how it handles misdemeanor marijuana cases. The Tarrant County  Criminal District Attorney’s Office on Monday, Nov....