Manufacturing industry collapses to the lowest level of Trump's presidency

A closely watched indicator of manufacturing in the United States fell in May to its lowest level in President TrumpDonald John TrumpThe Council of Economic Advisers of the head of the Trump government will leave the administration The Guardian editorial board states that Mr Trump is "not welcome" in the UK before his first visit to the United Kingdom. State, Kushner casts doubt on the ability of Palestinians to govern themselves.The time spent at the Oval Office as rising costs of commercial battles weigh on American companies.

The Institute of Supply Management (ISM) Purchasing Managers Index (PMI) fell to 52.1% last month, down 0.7 points from April. The index measures new orders, production, employment, supply and stockpiling among hundreds of US manufacturers.

As manufacturing activity increased for the 121st consecutive month and demand rose in May, lower customer inventories, supplier shipments and imports brought the PMI to its lowest level since October 2016.

"The overall feeling" among respondents "remained mostly positive," according to Timothy R. Fiore, chair of the ISM survey committee.

But the index "continues to reflect the slowdown in expansion," he added.

Several respondents to the PMI survey said the cost of raising Trump's tariffs on Chinese products would weigh heavily on their profit margins, and worried about the intensification of the US-China trade war .

After Trump's trade talks with China broke down in May, the president raised tariffs by 10 to 25 percent on the $ 200 billion worth of Chinese goods. The White House also released a list of about $ 300 billion worth of Chinese products that Trump could submit at rates later this year.

Trump's increased and proposed tariffs on Chinese products are likely to drive up the price of hundreds of consumer products, as major retailers prepare to pass on the costs to their customers.

And American manufacturers could still suffer. The latest ISM survey was concluded just two days after Trump's announcement that it would impose a 10% tariff on goods from Mexico, which exported more goods to the United States. United in 2018 than any other nation.

Tariffs on Mexican products would be a blow to the US auto and technology industries, which import and export parts and products to Mexican factories.