American factory employment sank in July to the lowest level since mid-2020, underscoring a deepening manufacturing downturn driven by dwindling demand and persistent trade policy uncertainty, according to closely watched industry surveys released Aug. 1 by ISM and S&P Global.
The drop in hiring came amid a broader deterioration in operating conditions. Both surveys reported soft orders and reduced output as factories cut back on inventories and workers. ISM’s employment index slid 1.6 points to 43.4 percent—its lowest reading since June 2020 and well below the 50-point threshold that separates expansion from contraction—marking the sixth straight month of job losses in the sector….