US manufacturing stalls: What's going on?

Business Dec 03, 2025

US manufacturing hit a pause in September 2024—no growth after a tiny bump in August.
Even though the sector makes up about 10% of the economy and grew a bit over the past year, this flat month shows manufacturers are still facing tough times.

Signs of struggle: Orders, jobs, and activity down

Key indicators like the ISM Manufacturing PMI stayed below 50 for the ninth month straight, which basically means factories are shrinking instead of growing.

Why is this happening?

Factories aren't running at full capacity—just 75.5%, which is lower than usual.
Tariffs on imports and high production and labor costs are making it hard for manufacturers to bounce back.
Plus, a long government shutdown delayed these stats from coming out sooner, showing how disruptions can ripple through the economy.