The US manufacturing sector has been facing challenges even before the pandemic hit. According to a report by The Dallas Morning News, manufacturing in the US started to decline in early 2019, indicating a mild recession in the sector throughout that year. This contradicts a claim made by Pete Buttigieg, who stated that the manufacturing sector was in a recession before the pandemic [0afb7b3f].
The report also highlights that the number of workers in manufacturing actually increased by about 3.3% during the presidency of Donald Trump, prior to the pandemic. However, the industrial production index fell by approximately 2.4% between August 2018 and February 2020, further indicating a downturn in the manufacturing sector [0afb7b3f].
The recent data from the Institute for Supply Management (ISM) confirms the ongoing struggles in the manufacturing sector. The ISM's Purchasing Managers' Index (PMI) for July was reported at 46.8%, down from 48.5% in June. This marks the fourth consecutive month of contraction in the sector. The new orders sub-index fell to 47.4, indicating a decline in new orders, while the production sub-index slid to 45.9, reflecting a decrease in production levels. Additionally, factory employment continued to shrink as firms reduced headcounts [a68f8100] [7561d97a] [f66ec8ed].
Despite the challenges faced by the manufacturing sector, there are some positive signs in the broader economy. The Federal Reserve reported a rebound in factory production in the second quarter of 2024, with data showing a 3.4% annualized rate of growth. This suggests that the struggles in the manufacturing sector may be exaggerated. The Federal Reserve has also indicated the possibility of reducing borrowing costs in September, which could provide some relief for the industry [f66ec8ed].
In conclusion, the US manufacturing sector has been experiencing a recession prior to the pandemic, contrary to the claim made by Pete Buttigieg. The recent data from the ISM confirms the ongoing struggles in the sector, with contraction in new orders, production, and employment. However, there are some positive signs in the broader economy, with a rebound in factory production and the possibility of reduced borrowing costs [0afb7b3f] [a68f8100] [7561d97a] [f66ec8ed].