Microeconomics Analysis: US Manufacturing, Trade War, Recession Fears

This microeconomics report examines the contraction of the U.S. manufacturing sector, highlighting its decline in August 2019 and its contribution to only 11% of the country's GDP. The report analyzes the impact of the U.S.-China trade war, including increasing tariffs, which have led to rising costs for both imports and exports, affecting the manufacturing sector's performance and supply chains. The report references the New York Times article by Nelson D. Schwartz and academic sources to support its claims. The report also notes the falling consumer confidence, the decrease in the manufacturing index below 50, and the Federal Reserve's response in cutting the benchmark interest rate. The analysis suggests that trade tensions are a major source of economic concern, potentially leading to a recession.