Manufacturing and Service sectors show decline due to trade policy and global trade decline

The U.S. Service and Manufacturing business expansion (growth) or contraction (decline) is tracked by the Institute for Supply Management (ISM). The ISM Manufacturing index for November was 48.1% (Oct 48.3%) and ISM Service (Non-manufacturing) at 53.9% (Oct 54.71). 

ISM index below 50 is a sign of contraction (read below) and in the case of manufacturing it is already below 50 since Jul/Aug, 2019.  Note that over 70% of US economy is Services driven, so the most experts are watching the Services ISM closely.  It is on a downward trend but holding above 50!

The ISM numbers have been negatively impacted and off their peak driven by businesses holding back due to US-China trade dispute and global trade policies causing global economic slowdown.

The ISM index number above 50 indicates that businesses are growing and a number below 50 indicates that businesses are contracting. So at 50 there is no growth or contraction. It is good news when businesses grow or expand, because businesses hire more people to make more Goods and provide more Services. On the other hand, when businesses contract, it means fewer jobs and more lay-offs, which is a bad sign for the economy. This is the 34th month is a row for manufacturing expansion. During the recent recession the ISM was recorded at dismal 33.3 in December 2008.