US manufacturing sector contracts in August: report

ANKARA

U.S. manufacturing sector contracted in August for the first time since 2016, according to a report published Tuesday by Institute for Supply Management.

The factory activity in the U.S. decreased to 49.1%, a decrease of 2.1 percentage points from the July reading of 51.2%, while the overall economy grew for the 124th consecutive month, the report said.

"This is the lowest reading since January 2016, when the index registered 48 percent," it added.

The report was released amid ongoing trade war between the U.S. and China by slapping tariffs on hundreds of billions of dollars worth of each other's goods, and it is escalating with new tariffs.

While U.S. President Donald Trump administration levied an extra 15% tariff on Chinese goods, China levied of 5% on U.S. crude oil.

Trump tweeted Tuesday that Washington is doing ''very well'' in negotiations with China and added that the officials in the Asian nation prefer a Democrat win in 2020 ''so they could continue their practice of 'ripoff USA'''.

Trump also warned that when he wins, ''China’s Supply Chain will crumble and businesses, jobs and money will be gone!'' under the new tougher conditions of the trade deal his administration would offer.