Growth in manufacturing slowed in October, with nonprofit industry group the Institute for Supply Management reporting Thursday that the White House’s tariffs wars with trade partners were starting to take a toll on the sector.
The institute’s Purchasing Managers Index, an indicator of the health of the sector, was at 57.7 percent, a decrease of 2.1 percentage points from the September reading of 59.8 percent.
“The expansion of new export orders softened, but five of six major industries contributed, up from two in September,” said Chairman Timothy Fiore. “Prices pressure continues…. Overall, the manufacturing community continues to expand, but at the lowest level since April 2018.”
[Also read: Trump tariffs are pushing companies’ China branches to other Asian countries, not US]
Computer and high tech industries reported that they were having shortages and much longer lead times for obtaining products, while chemical industries said tariffs were hiking costs of imports, increasing the cost of freight and even raising prices from domestic suppliers who import. The transportation industry reported that its supply chains were stressed.
“Mounting pressure due to pending tariffs,” said one anonymous manufacturer quoted in the study. “Bracing for delays in material from China – a rush of orders trying to race tariff implementation is flooding shipping and customs.”
