U.S. manufacturing declines for first time since 2016

WASHINGTON — The Institute for Supply Management, an association of purchasing managers, said U.S. manufacturing activity declined for the first time in three years, amid trade tensions with China.

The Institute for Supply Management's U.S. purchasing managers' index fell to 49.1 last month from 51.2 in July, reports Reuters. Figures below 50 indicate that the manufacturing sector is contracting.

The reports come amid last week's reports that U.S. consumer spending increased in July.

Nine industries including furniture, machinery and chemical products experienced growth last month, Reuters reports, citing the Institute for Supply Management. Seven other industries including electrical equipment, appliances and components all reported a contraction.

U.S. President Donald Trump's increased tariffs on goods from China may have contributed to shrinkage in the manufacturing sector, according to Bloomberg.

The manufacturing makes up around 12 percent of the American economy, Reuters reports.

The U.S. now joins Japan, China and the United Kingdom as countries that are experiencing a decline in manufacturing activity.