Market Data
December 1, 2025
ISM: November marks ninth month of contraction in manufacturing sector
Written by Kristen DiLandro
The Institute for Supply Management’s (ISM) latest report reflects the dim market conditions reported by US manufacturing executives in November. The same monthly report shows the sector is in its ninth consecutive month of contraction.
November’s ISM Manufacturing PMI (Purchasing Managers Index) stands at 48.2%, down half a percentage point from a month earlier.
Readings of 50% or higher demonstrate growth in the manufacturing economy, while readings below 50% suggest contraction.
Key indicators used by Susan Spence, chair of the ISM Manufacturing Business Survey Committee, to prepare the report showed mixed signals.
Key indicator assessments
Indicators such as Imports, New Order Exports, and Customer Inventories are still contracting, but at slower rates than they contracted in October. Meanwhile, overall New Orders, Employment, and Backlog of Orders indicators showed “faster” rates of contraction than in October. Production tipped into growth territory; its index was up to 51.4% in November from 48.2% in October.
Of the top six manufacturing industries in the US, three reported growth in November. A total of four segments reported growth for the month, while 11 industries reported contraction.
“In November, US manufacturing activity contracted at a faster rate, with pullbacks in supplier deliveries, new orders and employment leading to the 0.5-percentage point decrease of the Manufacturing PMI,” Spence reported.
Commentary from manufacturers
Manufacturing executives specifically cited changing trade policies and regulations as hurdles to growth. The report cited confusion among suppliers exporting to US manufacturers as a cause of delays and errors.
“Trade confusion. At any given point, trade with our international partners is clouded and difficult. Suppliers are finding more and more errors when attempting to export to the U.S. — before I even have the opportunity to import,” stated an executive in the Electrical Equipment, Appliances & Components sector. “Freight organizations are also having difficulties overseas, contending with changing regulations and uncertainty. Conditions are more trying than during the coronavirus pandemic in terms of supply chain uncertainty.”
An executive in the fabricated metals industry noted tariffs have curbed the use of some suppliers. Limited suppliers have led to longer lead times and more pricing uncertainty.
“The unstable market has made pricing fluctuate in a very volatile way; I have had to reduce suppliers for raw materials to maintain a better direct cost structure. Reducing my suppliers has reduced the availability of some items and created longer lead times,” stated the fabricator.
