U.S. Manufacturing Industry Is Contracting & Business Investment Is Slowing
August 27, 2019
New economic data continues to show that Trump has failed to deliver on his promises to grow manufacturing and create jobs. Meanwhile, working families still aren’t feeling the benefits from a growing economy.
MANUFACTURING INDUSTRY DECLINING: The U.S. manufacturing industry is contracting for the first time since 2009 — and it’s the worst in key battleground states like Ohio, Wisconsin and Pennsylvania.
CNBC: “The U.S. manufacturing PMI (purchasing managers’ index) was 49.9 in August, down from 50.4 in July and below the neutral 50.0 threshold for the first time since September 2009, according to IHS Markit. Any reading below 50 signals a contraction.”
Reuters: “But the blow to factory employment is more pronounced in places like Pennsylvania, Ohio and Wisconsin than in the rest of the country… In Pennsylvania and Wisconsin, factory employment is falling, while hiring is weaker in Ohio and Iowa than in the rest of the country.”
U.S. BUSINESS INVESTMENT REMAINS SLOW: July numbers showed that shipments of U.S. core capital goods fell by the most last month that they have in nearly 3 years.
Reuters: “U.S. Business Investment Appears Weak In Third Quarter”
Reuters: “New orders for key U.S.-made capital goods rose modestly in July while shipments fell by the most in nearly three years, pointing to continued weakness in business investment and a slowdown in economic growth early in the third quarter.”
HALF A MILLION FEWER JOBS: Jobs numbers for part of the last two years were revised this month and 500,000 fewer jobs were created than previously reported.
Business Insider: “New Jobs Numbers Undercut Trump’s Claim That His 2017 Tax Cuts Jolted The Economy And Spurred Hiring”
AMERICANS AREN’T FEELING THE BENEFITS FROM THE ECONOMY: A majority are worried about the economy.
New York Times: “Nearly three in five respondents to the survey said they were worried about the economy, regardless of whether they were personally struggling or doing well financially. That group cuts across party lines and encompasses a large group of voters who could collectively sink Mr. Trump’s re-election chances, including three in 10 Republicans and seven in 10 independents.”
TRUMP’S APPROVAL ON THE ECONOMY IS UNDERWATER and has fallen 5 points over the past year.
Associated Press: “Trump’s current economic rating represents a 5 percentage point drop from the same time last year, but for a president who has struggled to win over a majority of American voters on any issue, the economy represents a relative strength.”