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Manufacturing sector contracted for the first time since 2009, data show

The decline is a sign that manufacturers are starting to feel the effects of the ongoing trade war.

The prolonged trade war between the United States and China is taking a toll on the manufacturing sector, which contracted for the first time since 2009, data show.

The U.S. manufacturing purchasing managers’ index (PMI) fell to 49.9 in August from 50.4 in July, according to IHS Markit. It is the first time the closely watched indicator has fallen below 50 since September 2009.

The decline is a sign that manufacturers are starting to feel the effects of the ongoing trade war. Sales of U.S. exports decreased at the fastest pace since August 2009, according to the report. When exports fall, manufacturers typically respond by reducing inventories and cutting production. Over time, that gloominess could lead manufacturers to trim jobs.

View the complete August 22 article by Jonnelle Marte on The Washington Post website here.

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