WASHINGTON: US manufacturing sunk into recession in June after two consecutive quarters of declines amid President Donald Trump’s bitter trade wars, a slowdown in China and other trading partners.

The decline comes as the United States enters its 11th year of economic recovery and occurs despite Trump’s constant pledges to restore America to manufacturing greatness – even though services now drive three quarters of the US economy.

Despite jumping in June, manufacturing fell by a 2.2 per cent annual rate in the April-June period, and total industrial production lost 1.2pc, in both cases the second consecutive quarterly decline, the Federal Reserve said Tuesday.

“Manufacturing has borne the brunt of tariff uncertainties and slowing in global economic activity,” RDQ Economics said in its analysis. The retreat comes even as American consumers are sustaining their appetite for spending pushing retail sales higher for the fourth straight month, as shoppers in June took home more new autos and furniture and dined out more frequently.

Published in Dawn, July 17th, 2019