Economy

U.S. manufacturing sector contracts for first time since 2009

Workers assemble cars at the newly renovated Ford's Assembly Plant in Chicago,
Workers assemble cars at the newly renovated Ford's Assembly Plant in Chicago. Photo: Jim Young/AFP/Getty Images

The U.S. manufacturing sector contracted for the first time since 2009 in August, CNBC reports from data by IHS Markit.

Why it matters: The industry, which has flourished during the Trump administration, is not only facing ongoing concerns of a global economic slowdown, but is also staring down increased pressure from the U.S.-China trade war. The report also saw a slowdown in business growth, which IHS Markit's economics associate director told CNBC was its "most concerning aspect"

Go deeper: U.S. Steel plant in Michigan will temporarily lay off up to 200 employees

Trump backtracks on payroll tax cut

Trump
Photo: Mandel Ngan/AFP/Getty Images

President Trump abandoned his stance on considering a payroll tax cut Wednesday, just 1 day after telling reporters that he had been "thinking about" whether to pursue the move.

The big picture: Discussions over cutting the payroll tax, which currently sits at 6.2% and is used to fund Social Security and Medicare, are part of a broader White House effort to stem fears of a coming recession — though Trump insisted to reporters that "whether or not we do it now, it's not being done because of recession." Sources tell Axios' Jonathan Swan that Trump is "running out of tools" to juice the economy, with an economic slowdown looking increasingly likely ahead of the 2020 election.