U.S. manufacturing shrank for the ninth straight month in November, according to the latest Manufacturing Report on Business from the Institute for Supply Management. The PMI came in at 48.2, a half-point drop from October and still below the 50 mark that signals growth.
Only four sectors expanded: Computer & Electronic Products, Food, Beverage & Tobacco, Miscellaneous Manufacturing, and Machinery, while most major industries, including chemicals, transportation equipment, and plastics, saw contraction.
New orders fell to 47.4, production ticked up to 51.4, and employment dropped again, marking 10 consecutive months of job contraction. Prices continued rising, and customer inventories remained too low for the 14th month in a row.
Tariffs and economic uncertainty showed up repeatedly in respondent comments.
One Electrical Equipment panelist said, “trade with our international partners is clouded and difficult,” describing frequent export errors and inconsistent regulations overseas. A Computer & Electronics respondent added that tariffs continue to complicate long-term sourcing and squeeze margins.
Susan Spence, Chair of ISM’s Manufacturing Business Survey Committee, told Logistics Management the report reflects another “one-time bubble” in the data.
“In November, U.S. manufacturing contracted at a faster rate,” she said, pointing to pullbacks in supplier deliveries, new orders, and employment. She said recent ups and downs across metrics like new orders, production, and backlog resemble a “wave” rather than a sustained trend.
The weaker readings for new orders and faster supplier deliveries suggest pipelines remain thin. Spence said that the dynamic likely wiped out the brief production pop seen earlier this fall.
She also warned that ongoing tariff uncertainty could push companies to source elsewhere. “I worry every month more about how we’re giving international customers more time to go find other places to buy their stuff,” she said.
With no clear catalyst to spur new demand, Spence said current conditions will likely hold through early 2026. “The longer that takes, the longer these companies have to go to other places to buy what they need,” she added.
Visit Logistics Management for more analysis of the November PMI.
