WASHINGTON – US manufacturing contracted for an eighth straight month in October as new orders remained subdued, and suppliers were taking longer to deliver materials to factories against the backdrop of tariffs on imported goods.

Accounts from manufacturers in the Institute for Supply Management survey on Monday painted a dire picture of the factory sector, which ironically President Donald Trump’s sweeping duties are intended to stimulate. Economists have long argued it was impossible to restore manufacturing to its former glory because of structural issues, including worker shortages.

Some makers of computer and electronic products agreed, and noted last month that “the cost to import in many cases is still more attractive than sourcing within the US” The ISM added to the gloom from other advanced nations’ factory surveys.

“Tariffs have been roiling the sector for much of this year,” said Stephen Stanley, chief US economist at Santander US Capital Markets. “The comments from individual respondents suggest that firms are exhausted by all of the back and forth on tariffs since the beginning of April and are suffering mightily as their customers have pulled back significantly.”

The ISM said its manufacturing PMI fell to 48.7 last month from 49.1 in September. A reading below 50 indicates contraction in manufacturing, which accounts for 10.1% of the economy.

The PMI remained above 42.3, a level that the ISM said over time was consistent with an expansion of the overall economy.

Economists polled by Reuters had forecast the PMI rising to 49.5. Six industries including primary metals, transportation equipment and fabricated metal products reported growth. Among the 12 industries that contracted were textile mills, wood and chemical products as well as electrical equipment, appliances and components, machinery, and computer and electronic products.

Some makers of chemical products said business remained “difficult as customers are cancelling and reducing orders due to uncertainty in the global economic environment and regarding the ever-changing tariff landscape.” Others said “wonder has turned to concern regarding how the tariff threats are affecting our business,” adding that “orders are down across most divisions.”

Machinery manufacturers complained about tariffs, noting “the products we import are not readily manufactured in the US, so attempts to reshore have been unsuccessful.”

Others said the Trump administration’s trade war had hurt agricultural exports, and impacted farmers’ finances and their ability to buy new equipment.

China stopped buying American soybeans amid Washington’s trade war with Beijing. Last week, Treasury Secretary Scott Bessent said China had committed to purchase 12 million metric tons during the current season through January, down from 22.5 million tons in the prior season.

TARIFFS ARE CONSTRAINING PRODUCTION AT FACTORIES
The US Supreme Court on Wednesday will hear arguments on the legality of Trump’s import duties. Trump has defended the tariffs as necessary to protect domestic manufacturing.

The ISM survey’s forward-looking new orders sub-index rose to a still-depressed 49.4 last month from 48.9 in September. This measure has contracted in eight of the last nine months.

“For every positive comment about new orders, there were 1.7 comments expressing concern about near-term demand, driven primarily by tariff costs and uncertainty,” said Susan Spence, chair of the ISM manufacturing business survey committee.

A month-long shutdown of the US government is making it difficult to get a good read of the economy. The shutdown, on track to be the longest on record, has caused a government economic data blackout.

Prior to the shutdown, the economy appeared to be on solid footing for much of the third quarter, spurred by consumer spending and to some extent business investment in artificial intelligence. But the shutdown could undercut consumer spending as food aid for nearly 42 million people lapsed on Saturday.

Consumer spending is mostly being driven by high-income households, who are the biggest beneficiaries of a stock market rally, economists said.

Backlog orders remained subdued last month as did export orders. Production was weak after briefly rebounding in September. Tariffs are gumming up supply chains, resulting in longer delivery times to factories. The ISM survey’s supplier deliveries index increased to 54.2 from 52.6 in September. A reading above 50 indicates slower deliveries.

Manufacturers of transportation equipment said “US trade policy and reciprocal actions by China in the form of export controls on rare earths and semiconductors, as well as ocean freight carrier restrictions, have once again caused a lot of stress in supply lines.”

Factories continued to pay more for inputs, though the pace of price increases moderated. The survey’s prices paid measure eased to a still-high 58.0 from 61.9 in the prior month. That would support some economists’ views that the hit to inflation from tariffs could be a one-time boost to the price level.

Factory employment remained weak, with the ISM noting that manufacturers continued to lay off workers and leave open positions unfilled to manage headcount.

“There have been a lot of deals made with countries committing hundreds of billions of investment in the US, but these plants can take several years to get set up,” said Christopher Rupkey, chief economist at FWDBONDS. “Workers will have to wait a while longer to join the assembly line, because there are no good jobs out there yet.” — Reuters

WASHINGTON — The first glimmers toward ending a near-record long federal government shutdown were seen in the US Capitol on Monday, as leading Senate Republicans and Democrats talked of a possible “off-ramp” to the disruption.

For 34 days, a standoff between Congress and President Donald Trump has shuttered a range of federal programs including those that provide aid for low-income Americans, US soldiers’ paychecks and airport operations.

A new fiscal year began on October 1 with no legislation enacted to fund these activities. Thousands of federal workers have now been furloughed, and the battle has hung up around $1.7 trillion in discretionary funds that account for about one-third of total US spending annually.

“I’m optimistic,” Senate Majority Leader John Thune, a Republican, told reporters when asked about prospects for ending the government shutdown that has many federal employees performing their jobs without paychecks.

Asked if he was confident of ending the shutdown, Mr. Thune, of South Dakota, hedged, saying: “Don’t push it.”

The comment was a small but significant change in tone. Democrats have linked government funding to extending a US health insurance subsidy that is on the verge of expiring.

Low-income families are seeing their food stamp benefits expire or only partially funded.

“Based on, sort of, my gut of how these things operate, I think we’re getting close to an off-ramp here,” Mr. Thune said.

The No. 2 Senate Democrat, Dick Durbin of Illinois said, “I sense that, too.” But he quickly added: “We’re still stuck with this premise of what we’re going to do about healthcare costs.”

Senate Appropriations Committee Chair Susan Collins of Maine told reporters that progress was made with Democrats offering specific language to break the impasse and staffs from both parties laboring over the weekend. “It just feels better this week,” she said.

Nonetheless, Ms. Collins admonished: “It could all fall apart again. And I don’t mean to imply there’s an agreement.”

Meanwhile, a bipartisan handful of House of Representatives moderates floated a compromise plan.

Axios reported a group of four House centrists, three Republicans and one Democrat, offered a plan to extend the expanded Affordable Care Act tax credit for two years, but with new caps on people whose income is at the upper end of qualifying.

Since October 1, groups of Senate Republicans and Democrats have held sporadic private meetings to look at ways to resolve the gridlock that has consumed Washington but so far have been unable to get to the finish line.— Reuters

ROME — A Romanian worker trapped for hours under rubble in Rome on Monday following the partial collapse of a medieval tower near the Colosseum has died, local media said.

The man was rescued by emergency services late on Monday and taken to hospital in a serious condition, Rome police chief Lamberto Giannini had previously said.

Parts of the 29-meter Torre dei Conti crashed to the ground on at least two occasions, videos posted on social media and Reuters video showed. The first collapse took place at around 1030 GMT, the second about 90 minutes later.

Clouds of dust came billowing out of the windows, along with the sound of collapsing masonry. The second incident took place while firefighters were working on the structure with aerial ladders.

A second worker, also Romanian, was pulled out almost immediately and hospitalized with serious but not life-threatening head injuries, while two more workers suffered minor injuries and declined hospital treatment.

None of the firefighters were injured.

Authorities have seized the construction site, Italian daily Corriere della Sera reported.

TOWER BUILT BY 13TH CENTURY POPE
The tower, which was due to be converted into a museum and conference space, is located halfway along the Via dei Fori Imperiali, the broad avenue that leads from central Piazza Venezia to the Colosseum.

The building was still standing, but showing significant internal damage.

It once hosted city hall offices but has not been in use since 2006 and was being worked on as part of a four-year renovation project due to end next year, according to Rome city authorities.

Due to the EU-funded restoration work, the area around the tower was closed off to pedestrians.

The building was erected by Pope Innocent III for his family in the early 13th century, and was originally twice as high, but was scaled down after damage from earthquakes in the 14th and 17th centuries.— Reuters

LIMA — Peru has decided to break off diplomatic relations with Mexico, the Andean nation’s foreign minister said on Monday, after Peru’s former prime minister holed up in the Mexican embassy in the country to request asylum.

Foreign Minister Hugo de Zela told journalists that Peruvian officials learned earlier in the day that former Prime Minister Betssy Chavez, who served under President Pedro Castillo, had fled to the embassy.

Mexico’s foreign ministry did not immediately respond to a request for comment.

“In response to this unfriendly act, and taking into account the repeated occasions in which the current and former presidents of that country have interfered in the internal affairs of Peru, the Peruvian government has decided today to break diplomatic relations with Mexico,” Mr. de Zela said.

Ms. Chavez was facing criminal charges for her alleged role in Mr. Castillo’s attempt to dissolve Congress in late 2022. Mr. Castillo was ousted and remains under arrest.

Ms. Chavez had been imprisoned since June 2023, but was released by a judge in September while her trial was underway.

Her lawyer, Raul Noblecilla, told local radio station RPP that he had not heard from his client in several days and was unaware of whether or not she had requested asylum.

Ms. Chavez’s driver previously testified that she requested he take her to the Mexican embassy as Mr. Castillo’s bid to break up Congress was underway, before returning to her office.

Ms. Chavez denied that she attempted to reach the embassy then, and has denied knowing about Mr. Castillo’s plan to dissolve the legislature. Prosecutors have requested a 25-year sentence. — Reuters