Economy
ISM: Manufacturing growth slows in July, hits 10-month low
Written by David Schollaert
August 1, 2025
US manufacturing activity slowed again in July to a 10-month low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report. Despite a promising start to the year, the domestic manufacturing sector has contracted for a fifth straight month,
The ISM Manufacturing PMI (Purchasing Managers Index) stood at 48% in July, down one percentage point from 49% a month earlier.
A reading higher than 50% indicates the manufacturing economy is growing, while a reading below that shows contraction.
Still, the overall economy continued to expand for the 63rd month since last contracting in April 2020, ISM said. (A Manufacturing PMI higher than 42.3%, over a period of time usually indicates an expansion of the overall economy.)
“In July, U.S. manufacturing activity contracted at a faster rate,” ISM Chair Susan Spence said in a statement on Friday.
Supplier deliveries and employment indicators, Spence added, were the biggest contributing factors in the percentage point loss the index experienced last month.
The New Orders Index also contracted in July, down for a sixth straight month. It registered 47.1% in July vs. 46.4% a month earlier, according to ISM. Spence also noted that New Export Orders slowed their rate of contraction (46.1% vs. 46.3%).
In July, primary metals and miscellaneous manufacturing were among the seven manufacturing industries that reported growth, while fabricated metal products we among the 10 manufacturing industries reporting contraction.
David Schollaert
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