A measure of U.S. manufacturing activity unexpectedly fell in May to the lowest level since October 2016, in a sign that President Donald Trump's trade war with China is weighing on the economy as he considers further tariffs.

The Institute for Supply Management's (ISM's) purchasing managers index declined to 52.1 from 52.8, missing the median forecast of 53 in Bloomberg's survey but holding above the 50 mark that indicates expansion. Three of five components declined, including production, inventories, and supplier deliveries, according to a report Monday.

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