US factory sector contracts for 10th straight month in December
* Summary
- ISM manufacturing PMI drops to 47.9, lowest since October 2024
- Trump’s tariffs impact manufacturing, raising average tariff to nearly 17%
- Factory employment declines for 11th month
WASHINGTON, Jan 5 (Reuters) - U.S. manufacturing activity slumped to a 14-month low in December, with new orders contracting further and input costs grinding higher as the sector continued to bear the imprint of President Donald Trump’s import tariffs.
The Institute for Supply Management survey on Monday suggested a recovery was unlikely in the near-term, but economists were hopeful of a turnaround this year as Trump’s tax cuts took effect.
In the “tariffs” category, we have a collection of “art mugs” for our morning coffee from McIntosh Mugs, located in Canada. I recently broke one and looked to replace it, but they’re stopped shipping to the US because of the tariffs.
I found one at a resale shop in British Colombia and bought it, but it was (original price) $35, plus $17 (shipping/handling), so I did, and got it.
Just this morning I got a bill from FedEx for “import tariff charge” for another $17. Expensive mug, as it turns out.
But so much for the “somebody else pays the tariff” theory.