While embarking on an "Investing in America" tour of the nation's factories, President Joe Biden claimed that U.S. manufacturing is "booming" under his watch. As the Biden administration applauds these so-called "historic leaps," a new report says otherwise.
CLAIM: When Biden delivered remarks Monday at the Cummins power-generation facility in Fridley, Minnesota, his official Twitter account claimed that his "economic agenda has led to a Made in America manufacturing [...] boom." In a follow-up tweet, his POTUS account posted Monday night: "We're investing in America – with historic leaps in manufacturing [...] And it's working."
Join me as I deliver remarks on how my economic agenda has led to a Made in America manufacturing and clean energy boom. https://t.co/Fhefpi8fXB
— President Biden (@POTUS) April 3, 2023
We’re investing in America – with historic leaps in manufacturing, infrastructure, and our climate.
— President Biden (@POTUS) April 4, 2023
And it’s working.
We’ve created a record 12.4 million jobs, announced over 23,000 infrastructure projects, and started making things in America again. pic.twitter.com/XF8g11szUm
FACTS: U.S. manufacturing has plummeted to a new low since the start of the COVID-19 pandemic, according to a report released on the same day as Biden's speech. Monday's survey shows that the Institute for Supply Management (ISM)'s manufacturing index—known as the PMI—reached its lowest level (46.3%) since May 2020. Without factoring in the pandemic recession, the composite index reading hit its lowest point since 2009. A PMI below the 50% threshold is indicative of decline.
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The dramatic drop, considered a key barometer of U.S. factories, was worse than experts expected, well below the median estimate of 47.5% in a Bloomberg survey of economists. In addition to the three-year low, economic activity in the manufacturing sector shrunk in March for the fifth consecutive month under Biden's leadership, America's supply executives say in the latest ISM manufacturing report.
That ISM data is screaming recession. Few understand this.https://t.co/GZWpMbIVXL pic.twitter.com/UEez5oIQxG
— JaguarAnalytics (@JaguarAnalytics) April 3, 2023
"New order rates remain sluggish as panelists become more concerned about when manufacturing growth will resume..." ISM's Manufacturing Business Survey Committee chair Timothy Fiore comments in a press statement on the ISM's findings. "Price instability remains, but future demand is uncertain as companies continue to work down overdue deliveries and backlogs."
Commentary from manufacturers is overall downbeat. Transportation equipment producers say "sales are slowing at an increasing rate" while electrical equipment, appliances, and components manufacturers report that "new orders are starting to soften." Makers of chemical products say "sales [were] a bit down, and budgets being cut with a greater emphasis on savings."
Continued weakness in manufacturing. Note that prices paid, new orders and employment are all below 50 indicating contraction. Weakest new orders number since 2020. pic.twitter.com/ccpxEuIHL6
— Kathy Jones (@KathyJones) April 3, 2023
For at least the first half of the year, "the road will be a bumpy one," ISM's magazine predicts.
RATING: Biden's claim that America is experiencing a manufacturing "boom" is blatantly FALSE. Manufacturing has contracted for the fifth month in a row, the ISM report found. Analysts say its findings should be viewed as a window into the health of the U.S. economy.
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