U.S. manufacturing contracts for third straight month amid tariff uncertainty

The US manufacturing economy has been shrinking for three consecutive months. As President Donald Trump's tariff policy gets fully underway, the timing and scope of tariffs are becoming unclear, putting a brake on business activity.
According to the Institute for Supply Management (ISM) on the 2nd local time, the manufacturing Purchasing Managers' Index (PMI) for May was 48.5. This is the same as the previous month (
This is a 0.2 percentage point decrease from the previous record of 48.7, and the lowest level since November last year (48.4). When the PMI falls below the benchmark of 50, it indicates an "economic contraction." The U.S. manufacturing index is
Since March, it has been below 50 for three consecutive months. Looking at the detailed indicators of the PMI, the export and import sector was particularly sluggish. The new export orders index was 43.1 → 40.1
The import index fell sharply from 47.1 to 39.9 in May, as companies increased their imports before the tariffs were imposed and then began to adjust in May.
Bloomberg analyzed the decline in exports as a result of "the impact of foreign governments' retaliatory measures, such as tariffs, on U.S. manufacturers."
Many of the companies that participated in the survey complained that the tariff policy was hindering their business. One transportation equipment manufacturer said, "Demand for commercial vehicles is continuously declining.
"This is due to rising prices, economic uncertainty and supply chain instability caused by volatile trade policies," he said. One electronics manufacturer said, "Government spending cuts and tariff policies are hurting businesses."
"It's slowing down our activity. We can't take the risk of stockpiling inventory in an uncertain situation."