US manufacturers report fall in orders as growth expectations tumble

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US manufacturers have said that the new orders and employment will decrease in new orders and employment, fearing that the economy is losing its momentum as the expectations of growth have also decreased sharply.

The index of ISM manufacturing purchasing managers on Monday dropped from 1.5 to 5.5 in February, leaving it just above the area of ​​the contraction, while the secondary indicators pointed to the intense decline in the new order from 55.1 to 48.6.

The ongoing estimate of the Federal Reserve Bank of Atlanta, published on Monday, indicates the reduction of a 2.5 percent reduction in US activities in the first quarter, that it was much more severe than the proposed 1.5 percent contraction on Friday.

These statistics have come up in anxiety on the impact of President Donald Trump’s offensive trade policies on the US economy, as corporations consider the possibility of steep tariffs on the country’s largest partners.

Trump says he is planning to impose 20 percent tariffs in Mexico and Canada from Tuesday and to double the tariff on China to 20 percent.

However, on Sunday, Commerce Secretary Howard Lutnonic suggested that the amount of tariff would still be finalized, describing the situation as “liquid”.

Economists said that uncertainty over tariffs depending on confidence, he added that a gauge of prices paid in the ISM report has indicated anxiety on levy inflation impact.

“Several sectors are drying up the order in advanced uncertainty about trade policies,” says Oliver Allen, a senior US economist at Pantheon Macroconeomics.

“From October to January, the manufacturers of the ISM Manufacturing Index have reflected in a hurry to complete the orders before applying the tariff – now a crowd that seems to be,” he added.

The first-three-thy-thyme-indicated issue indicated by the Atlanta Fed will identify an intense disaster after the annual rate of 2.5 percent annually, although it was a one-year-old one year old customer in one year.

The intense drop of the GDPNO index was affected by weak trade data, weak construction statistics and unnecessary ISM readings.

Goldman shot economists were more optimistic in GDP, however, their tracking estimate for the first trimester was unchanged at 5.6 percent at an annual growth rate.

Jack Cleanhenz, chief economist of the National Retail Federation, said the US economy entered the “fair amount of speed” in 2021.

However, he also added that the image was becoming less clear as the “cross-consent”, including immigration restrictions, tariffs and uncontrollable.

“Although the recent economic data remains strong, we are concerned about the lower risk,” he said.