The Middletown Press (Middletown, CT)

Manufactur­ing growth slows as trade disputes take a toll

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American manufactur­ers grew at a slower pace in October as factories contended with supply disruption­s caused by disputes with China, Europe and other trading partners.

The Institute for Supply Management, an associatio­n of purchasing managers, said Thursday that its manufactur­ing index slipped to 57.7 last month — down from 59.8 in September and the lowest since April. It was the second straight monthly drop.

Still, anything above 50 signals growth, and manufactur­ers are enjoying a 26-month winning streak.

New orders, production, export orders and hiring grew more slowly. Thirteen of 18 manufactur­ing industries reported growth last month, led by textile mills and makers of electrical equipment.

American industry is generally healthy, but respondent­s to the ISM survey suggested that trade disputes are taking a toll. The United States has imposed taxes on imported steel and aluminum and on about $250 billion in Chinese products, drawing retaliatio­n from U.S. trading partners.

Several companies complained that the tariffs are driving up costs and limiting supplies. Respondent­s also cited labor shortages and the strains that high demand is putting on their supply chains.

Timothy Fiore, chair of ISM’s manufactur­ing survey committee, said that “57.7 is not a bad number. But it’s not where we had been. We have been bouncing around the top. This may be the first indicator of a softening that may continue.”

Manufactur­ers are also coping with weakening global economic growth and a strengthen­ing dollar, which makes American products costlier in foreign markets.

“Between disruption­s caused to the supply chain by tariffs and a strengthen­ing dollar, the factory sector may cool off going forward after an extraordin­ary run in 2017 and 2018,” Stephen Stanley, chief economist at Amherst Pierpont Securities, wrote in a research note. “Neverthele­ss, even with a weakerthan-expected result in October, for now, the pace of growth for manufactur­ing remains robust.”

The economic backdrop for manufactur­ers remains healthy. Consumer spending on long-lasting manufactur­ed goods was strong during the spring and summer, rising at an annual pace of 6.9 percent from July through September and 8.6 percent from April through June.

Factories are on pace to add more than 250,000 jobs this year, which would be biggest jump in manufactur­ing employment since 1997.

 ?? Associated Press ?? A United Auto Workers member installs the front doors on a 2018 Ford F-150 truck being assembled at the Ford Rouge assembly plant in Dearborn, Mich. American industry is generally healthy, but respondent­s to a new survey suggested that trade disputes are taking a toll.
Associated Press A United Auto Workers member installs the front doors on a 2018 Ford F-150 truck being assembled at the Ford Rouge assembly plant in Dearborn, Mich. American industry is generally healthy, but respondent­s to a new survey suggested that trade disputes are taking a toll.

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