Key Points:
- The ISM Manufacturing Index, a measure of manufacturing activity in the U.S., fell to 49.0 in March from 50.3 in February.
- This decline indicates contraction in the sector after two months of growth.
- The drop below the 50 threshold suggests companies are dealing with uncertainty over President Trump’s proposed tariffs, affecting demand, production, and employment.
- Aranceles (tariffs) caused delays in new orders, supplier deliveries, and inventory growth.
- Industry executives expressed concerns about rapidly deteriorating trade conditions due to tariffs and economic uncertainty.
Quotes:
“La actividad manufacturera estadounidense se contrajo tras una expansión marginal en febrero,” said Timothy Fiore, director of ISM surveys.
“Las condiciones comerciales se están ‘deteriorando a un ritmo rápido’, y los aranceles y la incertidumbre económica están haciendo que el entorno comercial actual sea un desafío,” noted another executive in the machinery sector.
Analysts’ Views:
Economists at High Frequency Economics warned that industrial activity could collapse abruptly if tariffs are implemented as threatened, without further delay.
