FX.co ★ US Manufacturing PMI Misses Forecast: ISM

In August 2025, the ISM US Manufacturing PMI experienced a modest rise to 48.7 from July's 48.0, although it didn't meet market forecasts of 49.0. This marks the sixth consecutive month of contraction within the manufacturing sector. A significant decline in production, which fell to 47.8 from 51.4, was only partly countered by a recovery in new orders, which rose to 51.4 from 47.1. Employment figures continued their downward trend, albeit at a slightly reduced rate, moving to 43.8 from 43.4. Indicators such as customers' inventories and order backlogs, which dropped to 44.6 from 45.7 and to 44.7 from 46.8 respectively, highlight continued weak demand conditions. Additionally, input price inflation eased slightly to 63.7 from 64.8 but remains significantly high. Survey participants predominantly attributed the unfavorable business climate to tariffs, which have led to increased costs, supply chain issues, and diminished competitive edge.