Just last week, the White House promoted in an article, “MADE IN THE USA: President Trump’s Vision is Revitalizing American Industry,” how Trump’s policies were ‘working’ to rebuild America’s manufacturing sector.
However, new economic data released today from the Commerce Department’s Census Bureau showed that new orders for U.S.-manufactured goods plunged sharply in April.
The new data came in well below what Economists had predicted. The general consensus was that factory orders would decline by 3.1%. However, they came in much lower at a negative 3.7%.
Coupled with decreases in business spending on equipment, this indicates that any previous momentum in the manufacturing industry, such as the 3.4% increase seen in March, was likely an anomaly resulting from pre-purchase activity ahead of Trump’s chaotic tariffs.
The American manufacturing sector is not booming, nor is it being revitalized by Trump’s policies; instead, retaliatory actions by trading partners have led to a decrease in new orders from American manufacturers.
Commercial aircraft orders plunged 51.5% in April. Orders for motor vehicles, parts, and trailers dropped 0.7%, helping to depress transportation equipment orders by 17.1%.
Manufacturing, which is over 10% of the total American economy, is a vital component of GDP. Continued decreases will mean slowing American growth.
Ultimately, the Administration’s ill-conceived policies and chaotic implementation mean a weaker, less competitive American economy.