FX.co ★ US Manufacturing Contracts Again in April: ISM

The ISM Manufacturing PMI for the United States edged down to 48.7 in April 2025 from 49.0 in March, slightly surpassing market predictions of 48. This figure indicated a continued downturn in the manufacturing sector for the second straight month, with production contracting more significantly (44.0 compared to 48.3) and further price increases being noted (69.8 up from 69.4). Although the decline in new orders occurred at a reduced rate (47.2 versus 45.2), there was a sharper decrease in new export orders due to ongoing tariff-related disruptions. Additionally, the pace of job losses slowed slightly (46.5 as opposed to 44.7). The ISM report highlighted that U.S. manufacturers were facing challenges with escalating costs and pressures on profit margins. The persistent uncertainty in trade was disrupting supply chains, leading to delays in shipping, complicated tariffs, and frequent adjustments in cost structures. Concurrently, customer demand was becoming increasingly unpredictable, with some clients postponing orders or shifting tariff costs onto manufacturers.