US manufacturing grows despite risk of tariff-triggered trade war
February 3, 2025
Jim Tyson, Senior Reporter, CFO Dive Online
Dive Brief:
- U.S. manufacturing activity expanded in January for the first time in 26 months on optimism that the Trump administration will spur economic growth, a report showed on Monday, as the White House clouded the economic outlook by using tariffs or the threat of such duties to influence Canada, Mexico and China.
- Demand, production and new export orders improved last month as many companies continued to trim staff, albeit at a slower pace than in December, the Institute for Supply Management said in its Manufacturing PMI report.
- Price increases persisted last month, “indicating that further [manufacturing] growth will put additional pressure on prices,” Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee, said in a statement. “Maintaining a slower rate of price increases as demand returns will be a major challenge for 2025,” he said.