On October 1st, the Institute for Supply Management (ISM) reported that U.S. manufacturing PMI rose to 49.1 in September from 48.7 in August, marking the seventh consecutive month of contraction. New orders fell to 48.9 from 51.4, backlog and export orders remained subdued, while factory employment stayed weak as layoffs and hiring freezes persisted.
Tariffs continued to weigh on supply chains, with supplier delivery times lengthening and input costs staying elevated. The ISM prices-paid index eased to 61.9 from 63.7 but remained high, signaling ongoing cost pressures. Manufacturing accounts for about 10% of the U.S. economy, with economists warning that structural issues such as labor shortages limit prospects for a full recovery despite protectionist measures.
