US manufacturing mired in weakness; AI spending boom helps some factories


FILE PHOTO: Chinese shipping containers are shown at the Port of Los Angeles, in San Pedro California, U.S., May 13, 2025. REUTERS/Mike Blake/File Photo

WASHINGTON (Reuters) -U.S. manufacturing contracted for a sixth straight month in August as factories continued to grapple with the impact of import tariffs, but an artificial intelligence spending boom is lending support to some segments of the industry.

The Institute for Supply Management (ISM) said on Tuesday its manufacturing PMI edged up to 48.7 last month from 48.0 in July. A PMI reading below 50 indicates contraction in manufacturing, which accounts for 10.2% of the economy.

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