On Tuesday, the 3rd of September 2019, official data released by the US Commerce Department by GMT 14.00 that the US manufacturing activity had contracted for the first time in more than three years, while hiring and new orders had witnessed a sharp decline in context of a dwindling investors’ confidence amid Sino-US trade tensions, renewing frets in the financial markets of an imminent recession of the world’s largest economy.
On top of that, adding further strains on to the US economy, which had been enjoying its straight 123rd month of expansion, the longest expansion United States ever went through, other official data released on Tuesday (Sept.
3rd) had poured cold water over last week’s robust consumer spending including a sluggish construction spending. Meanwhile, the Institute of Supply Management told on Tuesday (Sept. 3rd) that its index to track national factory activity, accounted for roughly 12 per cent of entire US economy, fell to a reading of 49.1 in August from 51.2 a month earlier, suggesting US factory activity had just entered into a technical recession.
Casting further glooms over the US economy, August’s ISM reading had posted its lowest figure since January 2016 and fifth straight month of decline, while addressing concerns over a higher consumer spending despite a faltering economy what would likely to stress US economy further, a chief economist at Naroff Economic Advisors in Holland, Pennsylvania, Joel Naroff said, “The canary in the mine may be falling off its perch. With manufacturing now starting to contract, it is even more critical that the consumer keeps spending. ”