U.S. Manufacturing Slump Deepens As Trump Tariffs Cloud Business Outlook

U.S. manufacturing stayed sluggish in June as weak new orders and rising input costs pointed to ongoing disruptions from Trump’s tariffs on imported goods, according to Reuters. The ISM reported that its manufacturing PMI rose slightly to 49.0 in June from 48.5 in May, a six-month low. It marked the fourth consecutive month of contraction in the sector, which makes up 10.2% of the U.S. economy. Economists surveyed by Reuters had expected the PMI to hold steady at 48.8. The survey added to signs of slowing economic momentum in Q2, despite a likely rebound in GDP as the impact of a record trade deficit eased with falling imports. Domestic demand grew at its slowest pace in over two years, as Trump’s tariffs distorted economic activity and may continue affecting data for some time.