Economy Growing but Companies Still Worried About Tariffs

Economy Growing but Companies Still Worried About Tariffs

The retail sector feels the largest business condition impacting general purchasing operations is the increased cost of goods due to the tariffs placed on China.

Economic activity in the non-manufacturing sector grew in June for the 113th consecutive month, according to a recent report from ISM.

The Non Manufacturing Index registered 55.1%, which is 1.8 percentage points lower than the May reading of 56.9%.

This represents continued growth in the non-manufacturing sector, at a slower rate. This is the index’s lowest reading since July 2017, when it registered 55.1%.

“Although the non-manufacturing sector’s growth rate dipped in June, the sector continues to reflect strength,” said. Anthony Nieve, Chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. “The comments from the respondents reflect mixed sentiment about business conditions and the overall economy. A degree of uncertainty exists due to trade and tariffs.”

A few comments from the survey reflect the sector’s assessment of the economy

--The largest business condition impacting general purchasing operations is the increased cost of goods due to the tariffs placed on China.” (Retail Trade)

--“Business continues to run well, [with] indications of slowing customer demand and improvement in supplier delivery performance.” (Transportation & Warehousing)

--“The continued restructuring of ocean-carrier routing is still causing havoc in the supply chain. We are experiencing minimal impact due to an increase in inventory levels.” (Wholesale Trade)

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish