The closely watched PMI report from the Institute for Supply Management for September came in at 49.1 indicating continued, albeit slowing, contraction. One of the root causes appears to be tariffs, based on the published comments of respondents across multiple industries:
- “The addition of the derivative steel and aluminum tariffs in the middle of the month — with no announcement — was devastating… all capital projects are on hold until there is some level of certainty and customers start to place orders for new equipment again.” (Transportation Equipment)
- “The tariffs are still causing issues with imported goods into the U.S. In addition to the cost concerns, product is being held up at borders due to documentation issues.” (Chemical Products)
- “Ongoing macroeconomic conditions highlighted by interest-rate management and tariffs continue to impact customer purchasing decisions, resulting in subdued production rates.” (Machinery)
- “Lead times have slightly normalized, but tariffs continue to drive additional spend.” (Petroleum & Coal Products)
- “Customer orders are depressed for heavy machinery because tariffs are so impactful to high-end capital equipment.” (Electrical Equipment, Appliances & Components)
- “Current business conditions remain volatile, with geopolitical tensions, weather disruptions and shifting trade policies driving uncertainty in agricultural commodities.” (Food, Beverage & Tobacco Products)
- “The semiconductor industry is being impacted by high tariff prices on parts from Korea, China and Europe. Our industry is at a low point right now as we race to get new nanotechnology in the U.S.” (Computer & Electronic Products)
- “Business is slowing down. Order books are softening as customers push orders out. Seems to be stemming from concerns about the direction of the U.S. economy.” (Plastics & Rubber Products)
- “Tariffs still affecting vast amounts of increases in hardware, Al (artificial intelligence) and stainless steel.” (Fabricated Metal Products)
- “Steel tariffs are killing us.” (Miscellaneous Manufacturing)
See the full report here.
