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American factory activity is shrinking for the first time in three years

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The US industrial sector shrank for the first time in three years last month, giving the latest sign that a global downturn in output is weighing on the US economy amid rising trade tensions between Washington and Beijing.

Tuesday's Institute for Supply Management's production index, a broad set of factory activity, fell to 49.1 in August from 51.2 in the previous month. Readings over 50 indicate that activity is expanding throughout the manufacturing sector, while those below 50 are a sign of contraction …



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