GET DAILY SIGNALSUS manufacturing activity index drops to 49.1%, amidst tariff war
Amidst the ongoing Sino-American trade war, a leading gauge of U.S. manufacturing activity fell into contraction territory last month.
For the first time during U.S. President Donald Trump's tenure, the Institute for Supply Management's manufacturing index dropped to a reading of 49.1% in August - from 51.2% in July. The reading also came in lower than the 51.5% that economists had projected for August.
Any reading below the 50% level for the above-mentioned index is an indication of contraction in manufacturing activity.
Manufacturing accounts for 12% of U.S. gross domestic product (compared to consumer spending share of around 70%). The manufacturing survey should not typically signal a recession in the overall economy until readings fall below 42.9%, according to the institute.
While much of the U.S.-China tariff war narrative apparently centers around the objective of boosting U.S. industries, the decline in U.S. manufacturing activity could potentially imply headwinds to U.S. producers from rising tariff-induced costs of buying inputs/materials.
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
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