FX.co ★ 5th District Manufacturing Slumps the Most in 10 Months

In July 2025, the composite manufacturing index for the US Fifth District took a significant downturn, plummeting 12 points from the prior month to -20, marking the lowest level in ten months. This result stands in stark contrast to anticipated improvements which projected the index to rise to -2. This decline highlights a fresh setback in US manufacturing activity, potentially triggered by renewed tariff threats from the White House. These threats may have disrupted firm supply chains, reversing a trend of easing trade barriers. According to the survey, there was a more rapid decline in shipments, falling to -18 from -5 in June, alongside a sharp drop in new orders volume, which plunged to -25 from -12. Backlogs continued to diminish, decreasing further to -30 from -18. Employment numbers also saw a deeper decline, moving to -16 from -6. In terms of pricing, there was a moderation in the growth rates of both prices paid, decreasing to 5.65 from 6.10, and prices received, which fell to 3.16 from 3.57. Despite these declines, there remains optimism with expectations for shipments rising to 11 from 6.