U.S. manufacturing activity fell to its lowest level since the end of the Great Recession in September
The U.S. manufacturing industry is struggling.
The Institute for Supply Management reported Tuesday that the industry's activity hit its lowest level in September since June 2009, when the country was finally emerging from the Great Recession, even though the U.S. economy continues to grow overall.
Manufacturing actually doesn't make up a very large portion of the U.S. economy nowadays — it accounts for just 8.5 percent of the employment sector and 11 percent of gross domestic product, The Wall Street Journal reports, which is why the decline hasn't altered the bigger picture very much. But, when digging beneath the surface, it's not inconsequential. Manufacturing's influence extends into other realms, the Journal notes; the industry's goods play a role in the shipping and retail industries, as well, and the final output of U.S.-made products actually accounts for a more robust 30 percent of the national GDP.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
There are reportedly probably a few reasons for the manufacturing's contraction, including tariffs resulting from the trade war with China, Boeing's struggles following the fatal crashes of its 737 MAX airplane, and the recent General Motors strike, but regardless, it's a tough time for the industry, which could ultimately affect the 2020 presidential election. Read more at The Wall Street Journal and the Institute for Supply Management. Tim O'Donnell
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
The best new music of 2024 by genre
The Week Recommends Outstanding albums, from pop to electro and classical
By The Week UK Published
-
Nine best TV shows of 2024 to binge this Christmas
The Week Recommends From Baby Reindeer and Slow Horses to Rivals and Shogun, here are the critics' favourites
By The Week UK Published
-
Crossword: December 28, 2024
The Week's daily crossword puzzle
By The Week Staff Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published