President Trump's tariff policies are leading to a decline in the U.S. manufacturing sector, with the economy shrinking for the sixth consecutive month. The Institute for Supply Management's Manufacturing Purchasing Managers Index (PMI) for August was at 48.7%, below the 50% level indicating expansion, although slightly higher than July's 48%. Economists had expected a rebound to 49%. The only positive note was a slight increase in new orders, while production and employment declined, supplier deliveries slowed, and raw material inventories decreased. Input prices rose, and both imports and exports contracted. Business leaders link the sector's weakness directly to the tariffs.