US manufacturing sector contracts for 5th consecutive month
For the fifth month in a row, US factories are slowing down.
July 2025 saw the sector contract again, with factory jobs dropping to their lowest point since July 2020.
The main culprit? Higher prices on imported materials thanks to ongoing tariffs, making it tough for manufacturers to keep up.
PMI slips to 48.0
The key manufacturing index (PMI) slipped further to 48.0—anything below 50 means things are shrinking.
New orders stayed weak for a sixth month straight, and even though production ticked up a bit, job cuts got worse as companies face shaky demand.
Input costs remain high
Even with supply chains running smoother and input costs dipping slightly, prices are still high and inflation from tariffs isn't letting up.
Goods just got their biggest price jump in five months, so expect these challenges to stick around through late 2023—meaning more pressure on jobs and wallets alike.
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