US manufacturing now officially in recession thanks to Trump

The United States is in a manufacturing recession, losing 12,000 jobs in that sector last month.

Impeachment may be dominating the news, but the less-noticed industrial slump ultimately could pose a greater threat to Trump’s reelection.

As measured by the Federal Reserve, manufacturing output shrank over two straight quarters this year. That’s the common definition of recession.

A separate, widely followed index drawn from purchasing managers showed September’s contraction in manufacturing was the steepest since June 2009, with production, inventories and new orders all falling.

And after adding nearly half a million jobs in the prior two years, which Trump frequently stressed in hard-hat rallies throughout the Midwest, manufacturing employment has stalled.

Instead of healthy job growth, layoff announcements have surged this year, especially in battleground states such as Pennsylvania and Michigan. Friday’s jobs report for September showed a slight drop in total factory jobs.

Manufacturing today accounts for only about 10% of economic activity, and so far, the overall economy and employment in the U.S. are still growing. But the pace has slowed considerably this year. The faltering industrial sector has started to crimp businesses in the transportation and warehousing sectors. And there are growing worries of spillover effects in the larger services sector and broader economy.