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Analysis
Nehemiah Kuhaulua
Manufacturing Shrinks For The 1st
Time In 3 Years On Trade Tension
Source
● Manufacturing activity has found itself in a slump for the first time in 3 years
due to the trade wars, resulting in a decline of new orders, production, and
employment.
● Since trade is the biggest issue among the ongoing tension with China and other
trading partners it’s led to sharp drops in in export orders.
● Factory growth has slowed down due to the decline of work with people putting
in less hours.
Main Ideas
- The trade wars are affecting export orders due to tariffs, resulting in certain
manufacturing sectors declining in activity and work growth.
- The sectors with decreasing orders are getting the brute of it all due to
employees working less hours.
- Even if manufacturing is a small part of the U.S. economy, its slump could be a
warning sign for others.
Discussion Questions
- If the manufacturing sectors of factories are in a bigger slump later on, will they
shut down?