Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

In It to Win It

(12,341 posts)
Tue Aug 5, 2025, 08:29 PM Aug 2025

US manufacturing extends slump; factory employment lowest in 5 years

WASHINGTON, Aug 1 (Reuters) - U.S. manufacturing contracted for a fifth straight month in July and factory employment dropped to the lowest level in five years amid tariffs that have raised prices of imported raw materials.

The Institute for Supply Management (ISM) said on Friday that its manufacturing PMI dropped to 48.0 last month from 49.0 in June. A PMI reading below 50 indicates contraction in manufacturing, which accounts for 10.2% of the economy.

Economists polled by Reuters had forecast the PMI edging up to 49.5. The weak PMI reading is consistent with economists' expectations for a slowdown in activity in the third quarter as the effects of the import duties become more apparent.

https://www.reuters.com/world/us/us-manufacturing-extends-slump-factory-employment-lowest-5-years-2025-08-01/
16 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
US manufacturing extends slump; factory employment lowest in 5 years (Original Post) In It to Win It Aug 2025 OP
Holy Cow BOSSHOG Aug 2025 #1
I don't get out a lot now, but sure looks to me multigraincracker Aug 2025 #2
It's almost like Trump is not the smartest guy in the room newdeal2 Aug 2025 #3
In other words KentuckyWoman Aug 2025 #4
All of the credit; none of the blame. They will take their pink slips home and tell... Ol Janx Spirit Aug 2025 #5
Some one else Trump will want to fire. Old Crank Aug 2025 #6
Goober's gonna get right on that. Buddyzbuddy Aug 2025 #7
EGGS‼️ live love laugh Aug 2025 #8
Who was President 5 Years Ago? DallasNE Aug 2025 #9
But she cackles when she laughs. Norbert Aug 2025 #13
Today's ISM Services report was also dismal. Also, U.S. avg overall tariff rate now about 18.3% (under Biden about 2.5%) progree Aug 2025 #10
So manufacturing hildegaard28 Aug 2025 #11
Just wait until President Sharpie gets hold of it misanthrope Aug 2025 #12
republicons did this to America BoRaGard Aug 2025 #14
How can that be when TSF's tariffs are returning manufacturing to the USA? sinkingfeeling Aug 2025 #15
Here in West Michigan Johnny2X2X Aug 2025 #16

BOSSHOG

(44,738 posts)
1. Holy Cow
Tue Aug 5, 2025, 08:36 PM
Aug 2025

No wonder trump wants there to be no confidence in factual data or reviews of Epstein Island Porn. What a Guy.

multigraincracker

(37,017 posts)
2. I don't get out a lot now, but sure looks to me
Tue Aug 5, 2025, 08:40 PM
Aug 2025

like a lot of empty parking lots at all the stores and restaurants.

newdeal2

(4,803 posts)
3. It's almost like Trump is not the smartest guy in the room
Tue Aug 5, 2025, 08:57 PM
Aug 2025

I wonder if his dummy supporters will ever catch on to the con.

KentuckyWoman

(7,374 posts)
4. In other words
Tue Aug 5, 2025, 09:01 PM
Aug 2025

In a few short months he managed to destroy the gains Biden got for blue collar Trump voters... along with everyone else.

Ol Janx Spirit

(737 posts)
5. All of the credit; none of the blame. They will take their pink slips home and tell...
Tue Aug 5, 2025, 10:23 PM
Aug 2025

...their wives and children that Biden shut down their factory, but thank God that Trump is purging the country of immigrants (they don't actually care if they are legal or illegal) and trans kids who want to play sports.

Old Crank

(6,674 posts)
6. Some one else Trump will want to fire.
Tue Aug 5, 2025, 11:01 PM
Aug 2025

The head of this group. Obviously a woke commie radical far left wing nut case.....

DallasNE

(7,964 posts)
9. Who was President 5 Years Ago?
Tue Aug 5, 2025, 11:29 PM
Aug 2025

Oh, the same guy that got it wrong 5 years ago is getting it wrong again now. Funny how that works. Trump is one-dementional so he doesn’t consider the cost of imported raw materials with tariffs attached and boom.

progree

(12,747 posts)
10. Today's ISM Services report was also dismal. Also, U.S. avg overall tariff rate now about 18.3% (under Biden about 2.5%)
Tue Aug 5, 2025, 11:33 PM
Aug 2025
https://finance.yahoo.com/news/us-services-activity-flatlined-july-140510153.html
US services activity flatlined in July, ISM data shows, 8/5/25

The Institute for Supply Management (ISM) said on Tuesday its nonmanufacturing purchasing managers index (PMI) slipped to 50.1 last month from 50.8 in June. Economists polled by Reuters had forecast the services PMI would rise to 51.5. A PMI reading above 50 indicates growth. ((So since the reading was 50.1, just a tiny bit above 50, the borderline between contraction and expansion, that's why the headline says it "flatlined" -Progree))

The ISM survey's new orders measure declined to 50.3 last month from 51.3 in June, with export orders falling back into contraction for the fourth time in five months.

The survey's measure of services employment fell to 46.4, the lowest level since March, from 47.2 in June. It has contracted in four of the last five months,

Price pressures, meanwhile, continue to mount. The survey's prices paid index rose to 69.9, the highest level since October 2022, from 67.5 in June ((so up 2.4 percentage points in just a month -Progree))

With tariff rates ranging from 10% to 41% on imports to the U.S. set to kick in on August 7, the Budget Lab at Yale now estimates the average overall U.S. tariff rate has shot up to 18.3%, the highest since 1934, from between 2% and 3% before Trump returned to the White House in January..


Tariff = tax on imports paid by the importer and eventually passed on to the U.S. consumer.

hildegaard28

(792 posts)
11. So manufacturing
Wed Aug 6, 2025, 02:16 AM
Aug 2025

Jobs have contracted for 5 months, while Trump has been back in office for 6. They say correlation doesn’t prove causation, but in this case I think it does.

Johnny2X2X

(23,693 posts)
16. Here in West Michigan
Wed Aug 6, 2025, 07:44 AM
Aug 2025

It's anecdotal, but I cannot remember a few month period where more businesses have announced they are closing their doors. It seems like there's a new announcement every couple days right now.

Electronics manufacturers who cited tariffs. A Grandfather clock company that employed hundreds and had existed for over a hundred years. Auto parts. Machine chops. Bars. Restaurants. Breweries.

And with every layoff, a post on my town's Reddit or Nextdoor page and debate. The CEOs and owners are citing tariffs and the costs and uncertainty associated with them, some are saying the economy is faltering. And then it's people from the left correctly pointing out what and who is responsible, and then people from the right saying, "those businesses would have closed anyway." All businesses go through ups and downs, but if you're in a little bit of a down and all the sudden out of the blue your costs for materials spike, it can absolutely sink you. That's what were seeing, a lot of companies who were having down years or maybe who were invested in next year are closing their doors because they simply couldn't withstand the shock of tariffs. And the restaurants and breweries seem to cite that the demand just isn't there all the sudden, people aren't spending money. People are terrified as they watch their country descend into fascism, people are mitigating their risk by trying to save.

I don't know where the economy is heading for sure, but the numbers are showing up bad and this feels dark, like worse than the 2008 Bush meltdown bad. I am darned near religious about keeping politics and finances separate, people missed out on massive stock market gains under Trump before because they let politics influence their money decisions, but this feels like a deep deep recession is building.

Latest Discussions»General Discussion»US manufacturing extends ...