Manufacturing Contracts, Small Business And Consumer Confidence Decline
September 3, 2019
Trump promised to bring back manufacturing, but new data shows that the manufacturing sector continues to decline under his watch. Meanwhile, consumer and small business confidence are both down, and more workers are losing their jobs.
THE MANUFACTURING INDUSTRY CONTRACTED FOR THE FIRST TIME DURING TRUMP’S PRESIDENCY, and another key manufacturing index hit its lowest level since 2009.
Bloomberg: “The Institute for Supply Management’s purchasing managers index fell to 49.1 in August, weaker than all forecasts in a Bloomberg survey of economists, data released Tuesday showed. Figures below 50 indicate the manufacturing economy is generally shrinking. The group’s gauge of new orders dropped to a more than seven-year low, while the production index hit the lowest since late 2015.”
CNBC: “Data from IHS Markit also released Monday showed the U.S. manufacturing PMI slowed to 50.3 in August, its lowest level since September 2009.”
SMALL BUSINESS CONFIDENCE FELL TO THE LOWEST LEVEL SINCE 2012, and 40% of small businesses expect the economy to worsen over the next year.
Wall Street Journal: “Economic confidence among small firms fell in August to the lowest level since November 2012, according to a monthly survey of more than 670 small companies conducted for The Wall Street Journal. The portion of respondents that expect the economy to worsen over the next 12 months rose to 40%, compared with 29% in July and 23% a year ago.”
CONSUMER CONFIDENCE FELL THE MOST IN SIX YEARS and is now at the lowest level of Trump’s presidency.
Bloomberg: “U.S. consumer sentiment fell the most in six years, slumping to the lowest level of Donald Trump’s presidency as Americans expressed concern about how his tariffs will affect the economy.”
CONSTRUCTION SPENDING FELL TO A SEVEN-MONTH LOW: Spending on structures like manufacturing plants dropped in July, contributing to business investment declining for the first time in more than three years.
Reuters: “Spending on private nonresidential structures, which includes manufacturing and power plants, dropped 0.8% in July to a seven-month low. That followed a 0.2% rise in June. Investment in nonresidential construction fell at its steepest pace in more than three years in the second quarter. That contributed to business investment declining for the first time in more than three years.”
ANOTHER PLANT CLOSURE AND MORE LAYOFFS: An Indiana manufacturing plant is set to shut its doors, laying off 160 to 170 workers.
Northwest Indiana Times: “Robert Christopher, a Valparaiso resident who worked on a punch press making helicopter bearings for McGill Manufacturing for eight years, was stunned by the news that now-owner Regal Beloit planned to shutter the 109-year-old factory, laying off 160 to 170 workers.”