The “Purchasing Managers Index” (PMI) for U.S. manufacturing contracted for the ninth month in a row in November, according to the Institute for Supply Management’s PMI. The report indicated that the institute’s manufacturing PMI figures for November fell to 48.2 from 48.7 in October. This PMI is an economic indicator that reflects the general health of U.S. manufacturing. Figures below 50 represent economic contraction, and figures above 50 show economic expansion. According to the report, higher input costs and slower orders have caused 67% of companies to hold back on hiring. Economic contraction was found in apparel, textiles, paper products, chemicals, and transportation equipment. Demand slowed, especially in the export market.
The Institute’s Chairwoman Susan Spence said, “It really is all about tariffs. We do not see anything on the horizon that’s going to turn this ship.” In April, U.S. President Donald Trump boosted tariffs, raising prices for U.S. producers to source materials. Duty levels have fluctuated for much of the year, and a pending ruling by the U.S. Supreme Court has only added to the uncertainty. One respondent wrote, “Business conditions remain soft as a result of higher costs from tariffs, the government shutdown, and increased global uncertainty.”
