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Take a look at this week's roundup of the most current and compelling industry news, updates, and trends related to OEMs and anything that impacts them. Read on to discover the latest in:
- Industry News: ISM Manufacturing Index Falls to its Lowest Level in 2 ½ Years
- Trade War: Economists' Fears Surge—is the U.S. in for a 2020 Recession?
- Metal News & Trends: Earnings Sink for En+ Group & Leading Metal Companies
- ISM Manufacturing Index Falls to its Lowest Level in 2 ½ Years: Manufacturing in the U.S. slumped to its lowest level in 2½ years amid escalating global trade tensions and a slowdown in global demand. The ISM (Institute for Supply Management) manufacturing index fell to 52.1 for May—the lowest reading since October 2016—compared to expectations for 53, according to Refinitiv estimates. Additionally, IHS Markit’s global Purchasing Managers Index fell to 49.8 in May, below the 50 level that divides expansion from contraction. (CNBC)
- “Dangerous and Destabilizing”—Businesses Warn About the Risks of Mexico Tariffs: Business Roundtable, an association of chief executive officers, including executives from J.P. Morgan Chase, Lockheed Martin, and IBM, said in a statement on Friday (5/31) that it would be a "grave error" to tax imports from Mexico. (CNN Business)
- Economists' Fears Surge—is the U.S. in for a 2020 Recession?: According to a recent report by the National Association for Business Economics, America's business leaders are growing more worried that the United States will enter a recession by the end of 2020. Their primary fear: "Increased trade protectionism [...]." (CNN Business)
- China to Create Company Blacklist as Trade War Escalates: On Friday (5/31), China said it would release a blacklist of "unreliable" foreign companies and individuals, hitting back after the United States targeted telecom giant Huawei in their escalating trade war. (Industry Week)
Metal News & Trends
Earnings Sink for En+ Group & Leading Metal Companies: Lower aluminum prices, coupled with the final month of sanctions by the U.S. government, teamed up to sink En+ Group’s Q1 net profit by 39% to USD 409 million. Leading metal companies have also reported a decline in earnings, and, going forward, [earnings] could come under further pressure given weak global demand and a looming global trade war. (Aluminium Insider & Economic Times)
- Iron Ore Prices Rebound: Iron ore prices rebounded above $100 per tonne cfr China today after several consecutive days of decline. (Metal Bulletin)
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