US manufacturing activity contracted for a fifth consecutive month in July, survey data showed Friday, logging its lowest reading in nine months amid tepid demand and cautious hiring.
The Institute for Supply Management鈥檚 (ISM) manufacturing index came in at 48 per cent last month, down from 49 per cent in June and remaining below the 50 per cent reading that would indicate the sector is expanding.
Declines in the supplier deliveries and employment indexes were the biggest factors behind the drop, ISM survey chair Susan Spence said in the report.
The index for new orders contracted at a slower rate, while there were quicker supplier deliveries 鈥榓s supply chain performance improved and sluggish demand continued,鈥� the report said.
鈥楾he employment index dropped further into contraction as panellists indicated that managing head count is still the norm at their companies, as opposed to hiring,鈥� it added.
A respondent in the apparel sector said: 鈥楾hese tariff wars are beginning to wear us out. It鈥檚 been very difficult to forecast what we will pay in duties and calculate any cost savings we鈥檝e had this year.鈥�
Another respondent, in the machinery industry, said: 鈥楥urrently, higher interest rates still depress the construction industry for new construction projects.鈥�
