American manufacturing shows a decrease after five months of growth

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The American manufacturing industry shows a decrease in August after five consecutive months of growth. Experts explain that producers are now facing with the consequences of low oil prices and a weak global economy, Oilprice.com reports citing an index monitored by the Institute for Supply Management.

According to its data, domestic manufacturing activity has dipped to 49.4 from 52.6 in July of this year, which indicates a sector decline, while figures above 50 indicate a growth. Most market analysts have previously forecasted the growth to decline to 52 points but the results of the index fell short of their expectations.

"The data from this report indicate that the U.S. manufacturing sector remains in an extended period of stagnation following a modest improvement in recent months," Barclays' chief U.S. economist, Michael Gapen, said in a note to the consulting firm’s clients.

USA Today supposes that the slowdown of the American manufacturing industry may be connected with China’s slowing economy, the EU’s financial crises, and the effects of a strong dollar on American export prices.