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Economic Times
a day ago
- Business
- Economic Times
US manufacturing mired in weakness as tariffs bite
U.S. manufacturing activity remained sluggish in June, with the PMI below 50 for the fourth consecutive month, signaling contraction. New orders remained subdued, and prices paid for inputs crept higher, suggesting that tariffs continued to hamper businesses. The survey indicated ongoing delays in clearing goods through ports, and manufacturers faced weak demand and further employment decline. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads U.S. manufacturing remained sluggish in June, with new orders subdued and prices paid for inputs creeping higher, suggesting that the Trump administration's tariffs on imported goods continued to hamper businesses' ability to plan Institute for Supply Management (ISM) said on Tuesday that its manufacturing PMI nudged up to 49.0 last month from a six-month low of 48.5 in May. It was the fourth straight month that the PMI was below the 50 mark, which indicates contraction in the sector that accounts for 10.2% of the polled by Reuters had forecast the PMI little changed at 48.8. The survey joined weak data on the housing market, consumer spending and swelling unemployment rolls that have suggested the economy's underlying momentum slowed further in the second quarter even as gross domestic product probably rebounded as the drag from a record trade deficit faded due to falling imports. A measure of domestic demand grew at its slowest pace in more than two years in the January-March Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the economic PMI last month was likely lifted by longer delivery times, which under normal circumstances would be related to strong extensive tariffs have caused bottlenecks in the supply chain, resulting in factories waiting longer for raw material ISM survey's supplier deliveries index slipped to 54.2 from 56.1 in May, though it was still high with a reading above 50 indicating slower deliveries. The ISM has reported "ongoing delays in clearing goods through ports of entry."The situation, however, appears to have improved slightly, with the survey's imports measure rising to a still-subdued 47.4 after slumping to 39.9 in May. Manufacturing is heavily reliant on imported raw production at factories picked up last month, it was probably the result of manufacturers working through backlog orders. The ISM survey's forward-looking new orders sub-index dropped to 46.4 from 47.6 in measure has now contracted for five consecutive months. Its gauge of prices paid by factories for inputs ticked up to 69.7 from 69.4 in the prior month. With manufacturers facing weak demand and higher prices for inputs, employment declined further last survey's measure of manufacturing employment fell to 45.0 from 46.8 in May. The ISM has noted an "acceleration of headcount reductions due to uncertain near- to mid-term demand."
Axios
a day ago
- Business
- Axios
It's (still) a no-hire/no-fire job market
If you look only at how many Americans are losing their jobs, this appears to be a pretty terrific labor market. If you look only at how many are being hired for new jobs, it is the weakest in years. Why it matters: It makes for a labor market in which those who have a job are able to hold onto it — but the outlook for new entrants to the workforce, or those unhappy with their current positions, is much gloomier. It is a likely factor, for example, in a sky-high unemployment rate among recent college graduates, which has spiked far above the rates for other workers. Driving the news: New Job Openings and Labor Turnover Survey data out Tuesday morning tells the tale. The number of layoffs fell by 188,000 in May, dropping to a rate only a tick above its multidecade lows. But the number of people hired into new jobs also fell by 112,000, to a rate significantly below its pre-pandemic levels. Separately, the Institute for Supply Management said Tuesday morning that manufacturing activity remained in contraction territory in June, adding that "managing head count is still the norm, as opposed to hiring." State of play: Similarly, if you look solely at initial jobless claims — the number of people who have lost their jobs and therefore file for unemployment benefits — everything looks good. But the number of continuing claims — people receiving ongoing benefits — has been gradually rising since 2022. There have been an average of 1.94 million continuing claims for the last four weeks, well above the 1.6 million trend in 2019. Between the lines: That suggests that while not many people are losing their jobs involuntarily, those who do are finding themselves on the jobless rolls for longer, as employers are reluctant to hire. What they're saying: "With employers in a holding pattern, job seekers are left in the lurch," NerdWallet senior economist Elizabeth Renter wrote in a note. "It certainly isn't a labor market friendly to the unemployed, even if it remains on solid footing." "Ultimately, employers are reluctant to make decisions they have to unwind later," Renter added. Of note: Federal Reserve chair Jerome Powell described this as "a more concerning thing" in his news conference last month — even as he and his colleagues view the labor market as being in basically sound shape. He noted that "there's not a lot of layoffs, but there's not a lot of job creation. ... If you're out of work, it's hard to find a job." "So that's an equilibrium we watch very, very carefully, because if there were to be significant layoffs and the job finding rate were to remain this low ... you would have an increase in unemployment fairly quickly." Reality check: There could be better news on the horizon. The number of job openings spiked by 374,000 in May, perhaps reflecting business confidence rebounding after trade war de-escalation.
Time of India
a day ago
- Business
- Time of India
US manufacturing mired in weakness as tariffs bite
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel U.S. manufacturing remained sluggish in June, with new orders subdued and prices paid for inputs creeping higher, suggesting that the Trump administration's tariffs on imported goods continued to hamper businesses' ability to plan Institute for Supply Management (ISM) said on Tuesday that its manufacturing PMI nudged up to 49.0 last month from a six-month low of 48.5 in May. It was the fourth straight month that the PMI was below the 50 mark, which indicates contraction in the sector that accounts for 10.2% of the polled by Reuters had forecast the PMI little changed at 48.8. The survey joined weak data on the housing market, consumer spending and swelling unemployment rolls that have suggested the economy's underlying momentum slowed further in the second quarter even as gross domestic product probably rebounded as the drag from a record trade deficit faded due to falling imports. A measure of domestic demand grew at its slowest pace in more than two years in the January-March Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the economic PMI last month was likely lifted by longer delivery times, which under normal circumstances would be related to strong extensive tariffs have caused bottlenecks in the supply chain, resulting in factories waiting longer for raw material ISM survey's supplier deliveries index slipped to 54.2 from 56.1 in May, though it was still high with a reading above 50 indicating slower deliveries. The ISM has reported "ongoing delays in clearing goods through ports of entry."The situation, however, appears to have improved slightly, with the survey's imports measure rising to a still-subdued 47.4 after slumping to 39.9 in May. Manufacturing is heavily reliant on imported raw production at factories picked up last month, it was probably the result of manufacturers working through backlog orders. The ISM survey's forward-looking new orders sub-index dropped to 46.4 from 47.6 in measure has now contracted for five consecutive months. Its gauge of prices paid by factories for inputs ticked up to 69.7 from 69.4 in the prior month. With manufacturers facing weak demand and higher prices for inputs, employment declined further last survey's measure of manufacturing employment fell to 45.0 from 46.8 in May. The ISM has noted an "acceleration of headcount reductions due to uncertain near- to mid-term demand."
Yahoo
a day ago
- Business
- Yahoo
US manufacturing mired in weakness as tariffs bite
By Lucia Mutikani WASHINGTON (Reuters) -U.S. manufacturing remained sluggish in June, with new orders subdued and prices paid for inputs creeping higher, suggesting that the Trump administration's tariffs on imported goods continued to hamper businesses' ability to plan ahead. The Institute for Supply Management (ISM) said on Tuesday that its manufacturing PMI nudged up to 49.0 last month from a six-month low of 48.5 in May. It was the fourth straight month that the PMI was below the 50 mark, which indicates contraction in the sector that accounts for 10.2% of the economy. Economists polled by Reuters had forecast the PMI little changed at 48.8. The survey joined weak data on the housing market, consumer spending and swelling unemployment rolls that have suggested the economy's underlying momentum slowed further in the second quarter even as gross domestic product probably rebounded as the drag from a record trade deficit faded due to falling imports. A measure of domestic demand grew at its slowest pace in more than two years in the January-March quarter. President Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the economic data. The PMI last month was likely lifted by longer delivery times, which under normal circumstances would be related to strong demand. The extensive tariffs have caused bottlenecks in the supply chain, resulting in factories waiting longer for raw material deliveries. The ISM survey's supplier deliveries index slipped to 54.2 from 56.1 in May, though it was still high with a reading above 50 indicating slower deliveries. The ISM has reported "ongoing delays in clearing goods through ports of entry." The situation, however, appears to have improved slightly, with the survey's imports measure rising to a still-subdued 47.4 after slumping to 39.9 in May. Manufacturing is heavily reliant on imported raw materials. Though production at factories picked up last month, it was probably the result of manufacturers working through backlog orders. The ISM survey's forward-looking new orders sub-index dropped to 46.4 from 47.6 in May. This measure has now contracted for five consecutive months. Its gauge of prices paid by factories for inputs ticked up to 69.7 from 69.4 in the prior month. With manufacturers facing weak demand and higher prices for inputs, employment declined further last month. The survey's measure of manufacturing employment fell to 45.0 from 46.8 in May. The ISM has noted an "acceleration of headcount reductions due to uncertain near- to mid-term demand." (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama) Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
US manufacturing mired in weakness as tariffs bite
By Lucia Mutikani WASHINGTON (Reuters) -U.S. manufacturing remained sluggish in June, with new orders subdued and prices paid for inputs creeping higher, suggesting that the Trump administration's tariffs on imported goods continued to hamper businesses' ability to plan ahead. The Institute for Supply Management (ISM) said on Tuesday that its manufacturing PMI nudged up to 49.0 last month from a six-month low of 48.5 in May. It was the fourth straight month that the PMI was below the 50 mark, which indicates contraction in the sector that accounts for 10.2% of the economy. Economists polled by Reuters had forecast the PMI little changed at 48.8. The survey joined weak data on the housing market, consumer spending and swelling unemployment rolls that have suggested the economy's underlying momentum slowed further in the second quarter even as gross domestic product probably rebounded as the drag from a record trade deficit faded due to falling imports. A measure of domestic demand grew at its slowest pace in more than two years in the January-March quarter. President Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the economic data. The PMI last month was likely lifted by longer delivery times, which under normal circumstances would be related to strong demand. The extensive tariffs have caused bottlenecks in the supply chain, resulting in factories waiting longer for raw material deliveries. The ISM survey's supplier deliveries index slipped to 54.2 from 56.1 in May, though it was still high with a reading above 50 indicating slower deliveries. The ISM has reported "ongoing delays in clearing goods through ports of entry." The situation, however, appears to have improved slightly, with the survey's imports measure rising to a still-subdued 47.4 after slumping to 39.9 in May. Manufacturing is heavily reliant on imported raw materials. Though production at factories picked up last month, it was probably the result of manufacturers working through backlog orders. The ISM survey's forward-looking new orders sub-index dropped to 46.4 from 47.6 in May. This measure has now contracted for five consecutive months. Its gauge of prices paid by factories for inputs ticked up to 69.7 from 69.4 in the prior month. With manufacturers facing weak demand and higher prices for inputs, employment declined further last month. The survey's measure of manufacturing employment fell to 45.0 from 46.8 in May. The ISM has noted an "acceleration of headcount reductions due to uncertain near- to mid-term demand." (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
