The U.S. manufacturing sector is in a downturn, highlighted by a drop in the ISM Manufacturing PMI index to 48.0, indicating five months of contraction. Employment rates are also suffering, with the employment index at 43.4, the lowest since 2020, and a quarter of manufacturers reducing payrolls. The Trump administration aims to boost local manufacturing through regulatory reforms and trade renegotiations. Despite the downturn, some manufacturing stocks, like Deere, are performing well and exceeding market returns, suggesting potential investment opportunities as recovery looms in 2025.
The U.S. manufacturing sector is experiencing a significant downturn, with the ISM Manufacturing PMI index falling to 48.0 in July, reflecting a fifth consecutive month of contraction.
The employment index saw a concerning drop to 43.4, marking the lowest since 2020, while 25% of manufacturers reported cutting payrolls, the highest since June 2020.
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