According to the closely-watched PMI from the Institute for Supply Management (ISM), nationwide manufacturing activity continued to contract in August for the sixth month in a row, although at a slower rate. The PMI improved to 48.7, up from 48.0 in July, but a reading below 50.0 indicates contraction. Here’s what survey respondents are saying:
- “Orders across most product lines have decreased. Financial expectations for the rest of 2025 have been reduced. Too much uncertainty for us and our customers regarding tariffs and the U.S./global economy.” (Chemical Products)
- “Tariffs continue to be unstable, with suppliers adding surcharges ranging between 2.6 percent to 50 percent.” (Petroleum & Coal Products)
- “Tariffs continue to wreak havoc on planning/scheduling activities. New product development costs continue to increase as unexpected tariff increases are announced (Computer & Electronic Products)
- “Domestic sales remain flat but… Export demand is falling as customers do not accept tariff impacts” (Fabricated Metal Products)
- “The trucking industry continues to contract. Our backlog continues to shrink as customers continue to hold off on buying new equipment. This current environment is much worse than the Great Recession of 2008-09.” (Transportation Equipment)
See the full report here.
