Americans Lose Confidence In The Economy As Trump Fails To Bring Back Manufacturing Or Create Jobs

Trump promised to bring back manufacturing and create jobs — but he hasn’t. Instead, his erratic policies have only hurt the manufacturing sector and cost jobs, and now Americans are losing confidence in Trump’s economy.

CONSUMER CONFIDENCE IN THE ECONOMY PLUNGED by the most in nine months in September.

Reuters: “U.S. consumer confidence fell by the most in nine months in September, far more than expected, as Americans’ economic outlooks darkened in the face of the U.S.-China trade war, according to a private sector report released on Tuesday.”

TRUMP’S ERRATIC POLICIES HAVE HURT THE MANUFACTURING SECTOR AND COST JOBS: Trump’s policies have cost manufacturing jobs and pushed the sector into a recession that threatens the broader economy.

Associated Press: “August’s weak manufacturing data is just the latest signal of a slowing economy. U.S. manufacturers also cut jobs last month, and business spending is falling… Meanwhile the Labor Department said manufacturing productivity suffered its worst performance in the second quarter since mid-2017. Taken together the data points to lagging demand that could eventually drag down consumer spending.”

Washington Post: “President Trump is counting on a strong economy to propel him to reelection in 2020, but his signature issue now looks dicey. The economy is slowing down. Manufacturing is in a recession, bankruptcies are rising in farm country and the trade war is starting to bite businesses and consumers.”

TRUMP HAS FAILED TO REVIVE THE STEEL INDUSTRY AS HE PROMISED: U.S. steel companies were forced to lower their financial outlooks due to falling steel prices and lack of demand.

Bloomberg: “Since the Trump administration announced tariffs last year, domestic steelmakers’ shares have slumped, partly on concern that trade tensions with China threatened global economic growth and demand for steel. Now, there’s evidence that those fears are being borne out, with U.S. Steel Corp., Nucor Corp. and Steel Dynamics Inc. all issuing warnings this week about third-quarter profits.”

CNN: “US Steel’s stock dropped 12.5% on Thursday after it lowered its financial outlook for the second half of the year, citing falling steel prices and a lack of demand. It’s the latest drop in a steady decline of the company’s share price — it is down more than 60% from a year ago — as President Donald Trump’s promises to revive the industry have failed to materialize.”

FACTORIES ACROSS THE COUNTRY CONTINUE TO SLOW: Regional manufacturing data shows factory activity continuing to slow and even contract across Pennsylvania, New York, and the mid-Atlantic.

MarketWatch: “The Philadelphia Federal Reserve’s manufacturing index fell to 12.0 in September after registering a reading of 16.8 in August”

Bloomberg: “A Federal Reserve measure of manufacturing in New York state cooled more than expected in September as capital-spending expectations fell to the lowest since 2016, adding to signs the U.S. factory slump is deepening.  The Empire State index, a survey of factories the state, fell to 2 from 4.8 as readings for new orders and shipments deteriorated, according to New York Fed data released Monday.”

Dow Jones: “Manufacturing activity across mid-Atlantic states softened in September, according to a report from the Federal Reserve Bank of Richmond, as indexes for shipments and the volume of new orders fell. The Federal Reserve Bank of Richmond said the composite manufacturing index fell to negative 9 in September from 1 in August.”

BUSINESS INVESTMENT AND EXPORTS TRUMP PROMISED TO BOOST ARE DOWN: In cutting interest rates last week, the Federal Reserve pointed to weakening business investment and exports — precisely the things Trump claimed his tax cut and trade policies would boost.

Wall Street Journal: “As in July, the Fed attributed its decision to lower rates by a quarter of a percentage point to ‘implications of global developments for the economic outlook as well as muted inflation pressures.’  At the margin, however, the Fed changed its characterization of recent economic conditions, noting that ‘business fixed investment and exports have weakened.’”