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US Manufacturing Activity Drops to Lowest Point of 2025: PMI
The ISM manufacturing PMI contracted for the 10th consecutive month, with 85% of manufacturing GDP shrinking and tariffs cited as a key factor in rising costs and reduced demand.
- On Monday, the Institute for Supply Management said its manufacturing PMI dropped to 47.9 in December, down from 48.2 and marking the 10th straight month below 50.
- Respondents cited tariffs as the key driver, noting Yale Budget Lab estimated duties rose to nearly 17% from under 3%, while the U.S. Supreme Court will rule on their legality in early 2026.
- Across sectors, ISM found that only two industries grew while 15 contracted, and last month 85% of manufacturing GDP contracted, rising from 58%.
- Companies reported both higher costs and weaker orders, noting ISM's new orders sub-index fell to 47.7 for the fourth month, while ISM prices paid index stayed at 58.5 with elevated input costs.
- Economists polled by Reuters expressed cautious hope that tax cuts could help this year, but Susan Spence warned, `But several consecutive months of gains in these indicators are necessary for a longer-term recovery,' and transportation equipment makers expect a weak first half of 2026.
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U.S. manufacturing slump shows little sign of ending, ISM shows
A closely watched index that measures U.S. manufacturing activity fell to 47.9% in December, the Institute for Supply Management said Monday. This is the lowest reading of the year and the 10th straight month of contraction in the factory sector. Article Attribution | Read More at Article Source The post U.S. manufacturing slump shows little sign of ending, ISM shows appeared first on RocketNews.
US factory sector contracts for 10th straight month in December
U.S. manufacturing activity slumped to a 14-month low in December, with new orders contracting further and input costs grinding higher as the sector continued to bear the imprint of President Donald Trump's import tariffs.
·Spokane, United States
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Total News Sources17
Leaning Left2Leaning Right1Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 29%
C 57%
14%
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