On Monday, the 3rd of June 2019, a national survey data had revealed that the US manufacturing activity growth had been slowed down in May to its weakest pace in more than two years, while multiple factory managers had been addressing to growing concerns of trade-spats on several fronts.
According to the Institute of Supply Management data revealed on Monday (June 3rd), US Manufacturing PMI (Purchasing Managers’ Index) had dropped in May to 52.1 from 52.8 a month earlier, remarking its lowest level since late-2016, while Wall St.
analysts’ poll had forecasted a figure of about 53.0. Nonetheless, a figure above 50.0 indicates growth and a figure below 50.0 points towards a technical recession. In point of fact, another survey on United States’ purchasing managers’ sentiment conducted by IHS Markit had also directed to a much-sluggish growth in US factory activity last month.
Aside from that, followed by the reveal of the survey data, multiple analysts had been quoted saying that the report was suggesting a higher downside risk looming over US economy, largely catalyzed by a ten-month-long trade-spat with China that almost alone contributed to a sharp slowdown of global economy alongside US President Donald Trump’s multiple failed attempts to overhaul the nation’s trade relationship with its major trading partners.
Referring to new China and Mexico tariff casting shadows over US factory orders, a chief economist at Pantheon Macroeconomics, Ian Shepherdson said, “The sector can’t thrive when it’s being hit by new taxes at random every few weeks.
This isn’t about macro, it’s about the whims of a president who understands very little about how the economy actually works”.