US manufacturing activity continues to grow despite new tariffs
According to the Institute of Supply Management (ISM), US manufacturing continued to grow in June.
The ISM index noted growth in factory activity with a reading of 60.2 points, up from the recorded 58.7 points in May, reported Reuters.
Both months saw the index read points above the 50 mark that separates expansion from contraction.
The industry, which accounts for 12% of the nation’s economy, had a successful month despite recent tariffs on steel and aluminium disrupting supply chains and causing delays in factory delivery.
“It will take a lot to derail the U.S. economy because of the sugar high it’s on from the fiscal stimulus, but a developing trade war between the U.S. and its trading partners is a mounting threat,” commented Ryan Sweet, Senior Economist at Moody’s Analytics, according to Reuters.
“Demand remains robust, but the nation's employment resources and supply chains continue to struggle,” noted Timothy Fiore, Chair ISM’s Manufacturing Business Survey Committee, CNBC reported.
“Respondents are overwhelmingly concerned about how tariff-related activity is and will continue to affect their business.”
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