On Monday, the 1st of July 2019, data released by the Institute of Supple Management (ISM) had revealed that US manufacturing activity had stumbled to nearly three-year-low in June, while anxieties had been escalating between United States and China over trade & tariffs, despite a trade truce reached earlier this weekend.
Apart from that manufacturing data, other economic data had shown that construction spending fell in May and investment in private construction project was down to nearly two and a half year low. In point of fact, Monday’s (July 1st) ISM data had been the latest indication that the economic growth in United States had been echoing the leads of major economies across the world, which had also been witnessing a sluggish growth momentum.
According to the Institute of Supply Management data released on Monday (July 1st), its index for national factory activity fell to 51.7 in June, its lowest reading since October 2016, from 52.1 a month earlier. More crucially, it had been the third straight monthly drop of the index.
Expressing concerns over US manufacturing and trade uncertainty, a chief economist at MUFG in New York, Chris Rupkey said, “Manufacturing is clearly taking it on the chin from the rising trade uncertainty”.