In October, U.S. manufacturing continued to contract, with the Institute for Supply Management reporting a PMI index of 48.7%, indicating a decline from September. Despite improvements in demand indicators like new orders and customer inventories, all remained below 50%. Tariff uncertainties and rising costs are major concerns, impacting orders and operations. Production and employment slowed, with many firms focusing on managing headcount rather than hiring. Although there was some positive sentiment from S&P on domestic market growth, overall optimism has waned due to rising unsold stock and trade policy uncertainties.

Source: https://www.supplychaindive.com/news/ism-pmi-october-2025-us-production-deteriorates-despite-improved-demand/804526/