Tariffs hit factory demand — Manufacturing Dive

The U.S. manufacturing sector contracted in September, with the ISM Purchasing Managers’ Index at 49.1%, weighed down by weak demand, tariffs, and export losses.

Key Takeaways

  • PMI signals contraction: At 49.1%, the index confirms continued weakness in manufacturing, particularly in demand and exports, despite a small uptick from August.

  • Tariffs drive export decline: New export orders plunged to 43%, as global trade pressures stifled demand for U.S. goods.

  • Employment and GDP shrink: With job losses and freezes widespread, manufacturing GDP dropped to 67%.

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