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1 October 2025 21:17  |

US Manufacturing Sector Remains in Contraction: ISM

The ISM US Manufacturing PMI rose to 49.1 in September 2025, up from 48.7 in August and slightly above market expectations of 49.0.

The reading marked the seventh consecutive month of contraction, though it was the strongest in the current downturn. A rebound in production (51.0 vs. 47.8) was offset by a decline in new orders (48.9 vs. 51.4). Employment continued to fall, albeit at a slower pace (45.3 vs. 43.8), while customers’ inventories (43.7 vs. 44.6) and order backlogs (46.2 vs. 44.7) also contracted, pointing to continued softness in demand.

The input prices gauge eased to 61.9 from 63.7 but remained elevated, indicating persistent cost pressures despite some moderation. Survey respondents cited tariffs, high costs, and weak demand as key challenges, with many holding off on capital projects, cutting costs, and facing delayed orders, particularly in machinery, metals, and semiconductors.

Source: Tradingeconomics.com

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