US manufacturing stuck in doldrums as tariff headwinds persist

Core Viewpoint - U.S. manufacturing has contracted for the ninth consecutive month in November, driven by declining orders and rising input prices due to ongoing import tariffs [1][2]. Manufacturing Sector Performance - The Institute for Supply Management (ISM) reported that the manufacturing PMI fell to 48.2 in November from 48.7 in October, indicating contraction in the sector, which constitutes 10.1% of the economy [4]. - Some manufacturers linked layoffs to the tariff environment, indicating a shift towards more permanent changes, including staff reductions and offshore manufacturing [2]. Impact of Tariffs - The imposition of 25% tariffs on over $460 billion worth of imports, particularly in the transportation equipment industry, has negatively impacted manufacturing, although some tariff relief has been provided [2][5]. - The Federal Reserve's Beige Book noted that while some districts reported slight increases in manufacturing activity, tariffs and uncertainty continue to pose challenges [5]. Industry-Specific Insights - Only four industries, including computer and electronic products and machinery, reported growth, while sectors such as wood products, transportation equipment, and textile mills experienced contraction [5]. - Chemical product manufacturers indicated that tariffs and economic uncertainty are dampening demand for construction-related products like adhesives and sealants [6].