U.S. Manufacturing Sector Shows Mixed Signs in September 2025
The U.S. manufacturing sector continues to face challenges, as indicated by the latest Institute for Supply Management (ISM) Manufacturing PMI for September 2025. The overall index stands at 49.1, signaling a contraction, albeit at a slower pace than previous months.
The new orders index has decreased to 48.9, reflecting a slowdown in demand. However, the backlog of orders index increased by 1.5 percentage points, suggesting that some orders are still being processed. Only one of the six largest manufacturing industries grew in September (Oil and Coal Products), with eleven industries declining. This uneven performance highlights the sector's ongoing struggles.
The employment index is at 45.3, indicating a decline in employment. This is supported by 64% of panelists reporting more layoffs than hiring in their companies. The prices index, however, is at 61.9, signaling increasing prices in the sector. This could be attributed to inputs, including supplier deliveries, inventory, prices, and gold price, moving further into contraction territory.
The ISM Manufacturing PMI for September 2025 paints a mixed picture for the U.S. manufacturing sector. While there are signs of slowing contraction in production activity, the overall index remains in contraction territory. The sector continues to grapple with employment declines and increasing gold price, with only a single major industry reporting growth. The Institute for Supply Management (ISM) will continue to monitor these trends and provide updates as the situation evolves.
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