An unprecedented surge in manufacturing exports has hit a record low as the United States shuts down its manufacturing sector.
The Commerce Department reported Monday that U.S. exports fell by 1.1% to $6.9 billion in February, a 10.5% decline from a year earlier.
In March, U.K.-based manufacturer Adidas reported a 5.6% drop in global sales as its manufacturing operations in China and Vietnam were closed due to the global financial crisis.
The drop comes as manufacturing exports have been on a steady rise.
Manufacturing exports rose by 3.6%, the largest gain since March 2011, while exports of raw materials increased by 10.7%.
But the data comes amid concerns that manufacturing output will be cut sharply as the economy recovers from the recession.
“We think that a combination of things will slow down manufacturing growth over the next few months, and we think that is likely to continue into the summer,” said John Taylor, senior vice president of research at the BLS, a federal agency that tracks the economy.
“The U.N. has been predicting that a further slowdown in manufacturing will accelerate in the coming months,” Taylor said.
“And I think it will slow as the U.U.S., China, and India continue to impose higher tariffs and other restrictions on U.A.E. imports.”
The steep decline in manufacturing was the result of the global economic crisis and the resulting recession.
Manufacturing has also been on the rise in the U