After two years of high interest rates and a challenging macroeconomic climate, the manufacturing industry has started to feel the pain of decreased demand for products such as cars and homes due to the high cost of borrowing for consumers. According to the Institute for Supply Management’s May Manufacturing PMI Report, the manufacturing industry has seen a plateau in its growth as the Federal Reserve maintains high interest rates. This comes after a positive start to the year, which showed promising signs of a rebound for the industry. The stagnant growth can be attributed to a lack of demand, with companies being reluctant to invest in new orders or capacity until interest rates are lowered.
