US manufacturing shrinks for 7th straight month
US manufacturing shrank again in September, marking seven months in a row of contraction, according to the latest Institute for Supply Management (ISM) report.
The main index (PMI) nudged up to 49.1 but stayed below the "healthy" mark of 50.
While there were small gains in production and the pace of job losses slowed, new orders dropped sharply—showing demand is still pretty weak.
New orders fell to 48.9
New orders fell to 48.9, and employment remained historically depressed.
Eleven industries—including wood products, apparel, and plastics—reported shrinking business.
Tariffs are making supply chains messier and pricier, especially for tech parts and heavy machinery where delays and extra fees keep piling up.
On a brighter note
With the US government shutdown limiting official economic updates, the ISM report is one of the few windows into how things are going.
On a brighter note: raw material prices have been dropping for three months straight, which could help ease inflation at checkout and support recent boosts in spending on big-ticket stuff like appliances.