Challenges in U.S. Manufacturing and Declining Import Trends

A recent publication by Yahoo Finance highlights that the U.S. manufacturing sector saw a continued decline in economic activity during May, with imports dropping to their lowest point since 2009.

The institute for Supply Management (ISM) reported a manufacturing PMI of 48.5 for May, slightly down from April’s figure of 48.7. A PMI above 50 suggests growth, while anything below indicates contraction—a trend that has persisted in this sector for nearly two years now.

On the import front,the index plummeted to 39.9, considerably lower than April’s reading of 47.1. This decline can be attributed partly to trade tariffs enacted during President Trump’s administration.

“The drop in imports reflects reduced demand adn an adjustment in import levels,” noted susan Spence,chair of the ISM manufacturing Business Survey Committee,in a statement released on June 3rd. “While there was a slight uptick in the Production Index compared to last month’s concerning figures, factory output still faced contraction as companies are adjusting their production strategies amid ongoing economic uncertainty.”