US industry expects a rosy 2019 – survey

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But business in the latter part of the year will not be as strong as 2018, as trade suffers from tariffs and the US dollar strengthens further, according to the year-end report from the Institute for Supply Management.

ISM’s semi-annual survey also

into the manufacturing sector, even though some companies may be adapting to life under President Donald Trump’s trade war since it began over the summer.

In the dominant services sector, with a Business Roundtable survey released Friday, which showed dimming sentiment among US corporate leaders — another sign of mounting fears the economy has peaked.

According to ISM, fewer companies expect to raise prices but many manufacturers are thinking of re-arranging their supply chains and factory locations due to the titfor-tat exchange of tariffs among the world’s major economies.

In the manufacturing sector, the And, of manufacturers who plan to decrease investment, about one

‘Real headwinds’

And as steady hiring creates a dwindling pool of available workers, the share of companies that reported difficulty filling open positions grew over the course of 2018.

Nearly 80 percent of manufacturers and 73 percent of services firms say they are struggling to

65 percent a year ago.

As a result, nearly 60 percent of respondents reported increasing wages to attract new recruits, up substantially from a year ago.

Meanwhile, as the trade war takes its toll, the survey found about two-thirds of manufacturers

sources for inputs and reviewing moving some factories due to US tariffs imposed this year on steel and aluminum, as well as $250 billion in Chinese goods.

Timothy Fiore, chair of the ISM manufacturing survey, said the second half of 2019 was expected

“One of the things that jumped - cline in global trade,” he said. Manufacturers’ expectations for

the year and they also see the US dollar continuing to strengthen.

“Those to me are real headwinds,” he said. “I just don’t see the export market right now as being an outlet for manufacturing capacity.”

There was a steep drop since May in the share of companies that expect to raise prices due to the tariffs.

At year end, 52 percent of manufacturers and 24 percent of services

prices because of tariffs, a decline from seven months ago, when the share was 74 percent and 50 percent, respectively.