The manufacturing sector had its best month in more than two years in January. However, the improvement was not enough to soothe economists' worries about the effects of President Donald Trump’s trade policies on the manufacturing industry.

The Institute of Supply Management manufacturing sector 澳洲幸运5开奖号码历史查询:Purchasing Managers’ Index for January moved above the 50% line for the first time in 26 months, indicating economic expansion in the sector.  The 50.9% reading comes in higher than last month’s 49.2% result and is slightly more than predictions from economists surveyed by The Wall Street Journal and Dow Jones Newswires.

But the results don’t factor in Trump’s move to 澳洲幸运5开奖号码历史查询:levy tariffs on Canada and China beginning Tuesday and 澳洲幸运5开奖号码历史查询:tariffs on Mexico next month. The three cou✤ntries represent about 40% of U.S. imports. 

“The manufacturing sector continued its positive momentum in January, but we expect t꧃his will be short-lived due to the trade war initiated by President Trump over the weekend,” said Matthew Martin, senior U.S. economist at Oxford Economics. “Our initial modeling suggests markedly lower demand for good☂s, higher inflation, and higher interest rates—all of which will weigh on the nascent upturn in manufacturing.”

Optimism💎 in Manufactur🅠ing Sector Could Be Shaken By Tariffs

The report showed that new orders increased for the 𒁏third month, while current production expanded for the first time in nine months. Employment levels also moved higher.

Trump has promoted tariffs as a means to 澳洲幸运5开奖号码历史查询:restore a U.S. manufacturing sector that has been languishing under the weight of elevated interest rates and tighter lending standards. By raising import taxes on foreign-made goods, Trump argues that more 澳洲幸运5开奖号码历史查询:manufacture🀅rs will produce goods in the U.S. to avoid the higher costs. 

The survey was taken before Trump announced the tariffs. At the time, man෴ufacturing officials said they felt better about the economic environment in January though did mention concerns about tariffs.

“The select industry comments strike a tone of optimism among purchasing managers with some mention of tariff and supply chain concern,” the Wells Fargo note said.