Manufacturing

Survey: U.S. manufacturing sector contracted for first time since 2016

Manufacturing

Two closely-watched surveys on Tuesday showed a bigger-than-expected slowdown in the U.S. manufacturing sector in August — including one by the Institute for Supply Management that indicated the industry contracted for the first time since 2016.

Why it matters: The trade war, cited as a top concern among manufacturing firms, is viewed as a big factor driving the global economic slowdown. This is particularly true in the manufacturing sector, which has retreated significantly from its initial "Trump bump" after the election.

America's worker deserts

Illustration: Sarah Grillo/Axios

The U.S. unemployment rate is so low that some cities and states have turned into "worker deserts" — places where companies can't find people to hire.

Why it matters: The "good news" story of the strong labor market has a big downside that is playing out in places like Iowa, New Hampshire and Florida, where companies say they can't keep up with business demand — hampering growth — unless they find more workers.