While Kamala Harris tries on the campaign trail to sell her agenda to America’s factory workers, August was another grim month for U.S. manufacturing.
The Institute for Supply Management’s manufacturing index came in at 47.2 percent in November, the fifth straight month below the 50 percent threshold signaling contraction for sector.
The number was slightly improved from the eight-month low of 46.8 percent recorded in July.
“While still in contraction territory, U.S. manufacturing activity contracted slower compared to last month. Demand continues to be weak, output declined, and inputs stayed accommodative.
Manufacturing has contracted in 21 out of the last 22 months, according to the Institute for Supply Management (ISM).
Fiore added that demand is slowing and companies are unwilling to invest in capital and inventory due to election uncertainty and high interest rates.
The Federal Reserve raised interest rates to combat the worst inflation in four decades, in large part stoked by massive deficit spending pushed through by the Biden administration. The Fed has signaled that it will begin lowering rates later this month.
“A noticeable slowdown in business activity. Staffing and production rationalization has been triggered. Previous optimism about future growth has been dashed,” an executive at a chemicals products company told ISM.
“Business is cooling down, and we don’t expect a rebound until after the election is over. As we build our 2025 budget, we continue to have deep concerns about the added environmental costs on energy,” a paper products executive said.
The almost two year old manufacturing slump undermines a key claim of the Harris campaign that the Biden administration’s policies have helped manufacturing workers.
