By Lucia Mutoikani
Washington (Reuters) – US business activity almost stuck in February in the midst of the growing fear of imports of imports and deep cuts on the expenses of the Federal Government, deleting all the profits marked in the consequences of President Donald’s electoral victory Trump.
Attempting at the activity at a 17-month low reported by S&P Global on Friday was the latest in a range of surveys to suggest that businesses and consumers were increasingly being made by Trump administration policies.
The sense of business and consumer increased after the November 5 Republican victory over hopes for less strict regulations, tax cuts and low inflation.
“Companies report widespread concerns about the impact of federal government policies, ranging from lowering costs to geopolitical tariffs and developments,” said Chris Williamson, leading business economist at S&P Global Market Intelligence.
“Sales are reported to have been struck by uncertainty caused by political change landscape, and prices are rising amid rise to tariffs related to suppliers.”
S&P Global’s Flash US US Composite PMI production index, which traces production and services sectors, dropped to 50.4 this month. This was the lowest reading since September 2023 and decreased by 52.7 in January. A reading over 50 shows expansion in the private sector.
The service sector constituted the fall of the PMI, contracting for the first time since January 2023.
Delay
Manufacturing activity increased to a high eight months, although this was attributed to “increased frontal cost or tariff -related supply deficiencies”.
Trump in his first weeks in office hit an additional 10% fee for Chinese imports. A 25% tax from Mexico and Canada was suspended until March. Trump this month raised tariffs on steel and aluminum imports to 25%.
He said Tuesday that he intended to impose automotive fees “25%” neighborhood and similar tasks for semiconductors and pharmaceutical imports.
Moreover, the expenses of the federal government are decreasing, with thousands of workers from scientists to park parkers, mainly those with rehearsal, ceased by billionaire the department of billionaire Elon Musk, or Dog – an entity created by Trump.
The Global S&P survey was carried out between 10-20 February.
One study this week showed that the feelings of home builders deteriorated in February while a preliminary survey from the University of Michigan earlier this month showed the weakening of consumer’s sense, with one -year inflation expectations rising at the levels viewed for time last November 2023.