US Manufacturing Sector Running Out of Steam

US Manufacturing Sector Running Out of Steam

There is increasing evidence of lackluster growth in US manufacturing, with output in the sector contracting in each of the past four months. Regions Bank Chief Economist Richard Moody anticipates continued headwinds for the nation’s factory sector due in part to fallout from US-China trade tensions and uncertainty over the course of foreign economic policy. But the manufacturing slowdown hasn’t yet acted as “a drag” on the nation’s overall economic performance, with the labor market and consumer confidence both remaining strong. “History tells us it would be foolish to think that can’t change, and there clearly has been fallout in the financial markets,” Moody cautions. “The longer trade policy remains a wild card, the more likely it becomes that manufacturing’s ills spill over into the broader economy.”

 

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