October 2025 ISM® Report: Manufacturing PMI® Hits 48.7%
In October 2025, the manufacturing sector in the U.S. continued its contraction phase, marking the eighth consecutive month of decline, according to the latest ISM® Manufacturing PMI® Report. The Manufacturing PMI® fell to 48.7%, a decrease of 0.4 percentage points from September’s reading of 49.1%. This report highlights key indicators affecting economic activity, including new orders, production, and employment.
Key Findings of the October 2025 ISM® Manufacturing PMI® Report
Overview of Manufacturing PMI®
The Manufacturing PMI® indicates a contraction in the manufacturing sector. A PMI® reading below 50% signifies overall economic decline, while above 50% indicates growth. October’s PMI® figure reflects continuing challenges in various manufacturing industries.
New Orders and Production
- The New Orders Index reported 49.4%, indicating contraction for the second month.
- Production declined to 48.2%, down 2.8 percentage points from September.
Employment Trends
The Employment Index registered 46.0%, showing a slight increase but remaining in contraction territory. Companies are focusing more on workforce reductions due to uncertainties in demand.
Supplier Deliveries and Inventories
- The Supplier Deliveries Index increased to 54.2%, indicating slower delivery performance.
- Inventories decreased significantly to 45.8%, reinforcing the contraction trend.
Export and Import Orders
The New Export Orders Index saw a slight improvement, reaching 44.5%. However, the Imports Index remained relatively low at 45.4%, reflecting ongoing demand challenges.
Prices and Costs
The Prices Index indicated continued increases, recording 58% for October. This decrease from September’s 61.9% shows a slowing rate of price increase, largely attributed to fluctuations in commodity prices.
Sector Performance
Of the six largest manufacturing industries, only Food, Beverage & Tobacco Products, and Transportation Equipment showed expansion in October. The remaining industries faced significant contraction.
Industry Feedback
Manufacturers expressed concerns over declining orders, increased tariffs, and geopolitical uncertainties, impacting overall market stability. Many cited dampened domestic demand and ongoing fluctuations in pricing as critical challenges.
Conclusion
The October 2025 ISM® Manufacturing PMI® Report shows that while there are slight improvements in certain indicators, the overall manufacturing sector remains under pressure. Challenges such as pricing volatility, demand uncertainty, and global trade dynamics continue to affect economic performance.
