Manufacturing Contracted in August For Fifth Consecutive Month

The US manufacturing sector is struggling. For the fifth month in a row, it’s shrinking according to the latest ISM Manufacturing Report On Business.

This ongoing decline paints a clear picture of the challenges facing our economy under the Biden / Harris administration.

Let’s look at the numbers. The Institute for Supply Management’s manufacturing gauge hit 47.2 in August.

While this is a slight uptick from July, it’s still below 50 – the mark that separates growth from contraction.

This isn’t just a blip on the radar. It’s a trend that’s been building for months.

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Production is down. New orders are at a 15-month low. Even our exports are taking a hit, shrinking at the fastest rate since the start of the year.

These aren’t just statistics. They represent real jobs, real businesses, and real American families feeling the pinch.

Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, put it bluntly: “the manufacturing sector has contracted the last five months, but at a slower rate in August.”

This “slower rate” of decline is cold comfort to the workers and business owners on the front lines of this economic struggle.

What’s behind this downturn? While global factors play a role, we can’t ignore the impact of current economic policies.

The Biden-Harris administration’s approach to the economy is clearly not delivering the results American manufacturers need.

Take, for example, the issue of costs.

The ISM index of prices paid for materials rose to a three-month high of 54 in August.

After declining for most of 2023, input costs have been rising every month this year.

This puts added pressure on manufacturers already struggling with declining orders and shrinking backlogs.

There is one silver lining: manufacturers’ customers are getting better at managing their inventories.

The ISM report shows that customer inventories have been shrinking every month since late last year.

This could set the stage for a rebound – but only if we see the right policies put in place to support growth and innovation in the manufacturing sector.

The persistent decline in US manufacturing is more than just an economic indicator.

It’s a stark reminder that the Biden / Harris administration is falling far short.

As we look ahead to this election, voters have a critical choice to make.

Do we continue down this path of manufacturing decline, or do we choose new leadership with fresh ideas to revitalize this crucial sector of our economy?

The time for change is now.

Our manufacturing sector – and the millions of Americans who depend on it – deserve better.

As we move forward, let’s hope voters recognize the urgent need for a new economic direction.

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The future of American manufacturing, and indeed our entire economy, may well depend on it.