Utility Dive•26 days ago
Tariffs continue to weigh on manufacturing as PMI index shows contraction
Key Takeaway
Persistent tariffs and policy uncertainty are causing contraction in the manufacturing sector, which could impact industrial power demand and increase costs for power project developers and large industrial loads.
AI Summary
- •The manufacturing sector is experiencing contraction, as indicated by the Purchasing Managers' Index (PMI).
- •Tariffs are identified as a significant factor weighing on manufacturing, implying potential cost increases for industrial inputs and power project components, or reduced demand from industrial loads.
- •Ongoing policy uncertainty regarding the 'legality of the tariffs' is hindering recovery and future planning for industrial operations, creating headwinds for large industrial power consumers.
Topics
policy
Article Content
“We do not see anything on the horizon that’s going to turn the ship until there is more certainty ... with the legality of the tariffs,” said Susan Spence, chair of the ISM’s Manufacturing Business Survey Committee.