Key Takeaways The continued expansion of the service sector bodes well for the health of the economy despite struggles in manufacturing, because the services sector is by far the economy's largest. Instead, manufacturers have grappled with increased costs, reduced demand, and uncertainty about rapidly changing trade policy. "It has not been a great year," one manager in the chemical business told ISM. "We have had some success holding the line on costs; however, real consumer spending is down and tariffs ar ...