Manufacturing made up 11% of gross domestic product in the second quarter, the smallest part going back to 1947 and down from 11.1% within the prior period, a Commerce Department report showed Tuesday. Figures before 2005 were for full years only.
The latest number compares with 13.4% are the real deal estate, 12.8% for professional and business services and 12.3% for governments, according to the figures on GDP by industry.
Once a powerhouse with the U.S. economy, creating of a quarter of GDP inside the 1960s, the manufacturing sector has steadily declined in importance. Trump promised to provide “victory” to factory workers by bringing production jobs back to the U.S.
While manufacturing has added about 50 % of one million workers on the whole since Trump took office, states like Pennsylvania and Wisconsin that helped him win in 2016 have become losing factory jobs amid a persistent trade war with China along with a weaker global economy.
The administration’s protectionist policies have disturbed companies’ supply chains, stymied investment and slowed hiring. Tariffs on huge amounts of dollars valuation on Chinese products helped tip the manufacturing sector into recession earlier this year. Some recent figures suggest stabilization however it remains fragile.
Wednesday’s third-quarter GDP report is forecast to demonstrate the economy grew with the second-slowest pace of Trump’s presidency. On Friday, data may show manufacturing jobs dropped 55,000 in October through the prior month, largely reflecting the walkout of a huge number of General Motors Co. employees.