The US is the 5th major economy to see manufacturing slump

September 5, 2019 – According to Markets Insider yesterday, global manufacturing has taken a heavy hit during the trade war.

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The US economy joined the UK, Germany, Japan, and South Korea in posting similar manufacturing declines amid a worrying slowdown in global growth. The latest US data came two days after Trump’s newest round of tariffs kicked in, affecting billions of dollars’ worth of Chinese and US consumer goods.

Germany’s latest data showed that the sector “remained firmly in contraction.” For the German economy, this is bad news, as 47% of GDP is made up by the manufacturing sector.

Jibun Bank – Japan claimed that “sluggish demand continued as conditions in domestic and overseas markets remained challenging.” China is Japan’s top export market after the US, making up nearly 40% of exports between the two superpowers. Japan, like Germany, suffers from weaker demand for Chinese and American products, as Japan exports machinery into both countries.

“Geopolitical uncertainty weighing on business capital investment remains the main drag on global industry,” Olya Borichevska, from global economic research at JPMorgan, said in a note this week. “Developments on this front need to improve for industry to lift.”

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