Will Phase One Provide the Catalyst for a U.S. Manufacturing Turn Around?

Chart Will Phase One Provide the Catalyst

With the announcement of a phase one U.S.-China trade deal, the manufacturing and industrial sectors gained some clarity. As the deal is implemented over time, U.S. manufacturing may experience a revitalization. However, the deal was not enough to stop the slide of ISM Manufacturing PMI in its first reading since the announcement. While it is too early to judge the impact of the deal, it is somewhat surprising there was not even a marginal improvement in ISM Manufacturing. As the news sets in over the coming months, we will be watching to see if confidence in the manufacturing sector rebounds.