25 Sep Slow Going. Click to keep reading…
Factory activity is weakening, in part due to the uncertainty related to the trade war. Inventory growth is slim, an indicator that manufacturers expect demand to decline. Even as some wholesalers and retailers stock up now to avoid the price hikes on Chinese imports, that process will probably quickly taper off. The decline in inventories will contribute to a declining GDP, which is expected to dip a quarter of a point in 2020.
The Institute for Supply Management reported in August the first manufacturing activity contraction since 2016. In the first part of 2019, the U.S. added 44,000 manufacturing jobs, a sharp decline from the 170,000 added during the same time period in 2018.
While the U.S. and China both take steps to stay the trade war course, the economy is showing the strain.
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