The ISM US Manufacturing PMI slipped to 48.7 in October 2025, down from 49.1 in September and below expectations of 49.5, marking the eighth straight month of contraction in the sector. Production declined (48.2 vs 51), and further weakness appeared across new orders (49.4 vs 48.9), inventories (45.8 vs 47.7), and backlogs (47.9 vs 46.2).
Employment continued to fall (46 vs 45.3), with 67% of respondents reporting that managing headcount—rather than hiring—remains standard practice. Price pressures eased (58 vs 61.9), while supplier deliveries slowed for a third consecutive month (54.2 vs 52.6).
(Of the six largest manufacturing industries, only two—Food, Beverage & Tobacco Products and Transportation Equipment—expanded in October)
