FX.co ★ US Manufacturing Sector Shrinks at a Faster Pace: ISM

In October 2025, the ISM US Manufacturing PMI slipped to 48.7 from September's 49.1, falling short of expectations which projected 49.5. This marks the eighth consecutive month of contraction within the manufacturing sector. Notably, production witnessed a decline, registering at 48.2 compared to 51 in the previous month. Additional declines were evident in new orders, which decreased to 49.4 from 48.9, inventories to 45.8 from 47.7, and backlog of orders to 47.9 from 46.2. Employment continued its downward trend, posting a decrease to 46 from 45.3, with 67% of respondents reporting that managing workforce levels remains prevalent, rather than engaging in new hiring. Concurrently, there was a reduction in price pressures, with the index easing to 58 from 61.9, while the supplier deliveries index demonstrated slower performance for the third month in a row, reaching 54.2 from 52.6. Susan Spence, Chair of the ISM, commented, "Among the six largest manufacturing industries, only Food, Beverage & Tobacco Products and Transportation Equipment experienced expansion in October."