The U.S. manufacturing sector contracted for the 10th consecutive month in December 2025, following a two-month expansion and 26 straight months of contraction, according to the nation's supply executives in the latest ISM Manufacturing PMI Report. The report, issued by Susan Spence, MBA, Chair of the Institute for Supply Management's Manufacturing Business Survey Committee, highlights a range of economic indicators and their implications for the manufacturing sector.
Key findings include:
- New Orders: Contracted for the fourth straight month, with a figure of 47.7%, a 0.3-percentage point increase from November's 47.4%.
- Production: Expanded, with a figure of 51%, a 0.4-percentage point decrease from November's 51.4%.
- Employment: Contracted at a slower pace, with 44.9% reporting, a 0.9-percentage point increase from November's 44%.
- Supplier Deliveries: Slower, with a figure of 50.8%, a 1.5-percentage point increase from November's 49.3%.
- Inventories: Contracted, with a figure of 45.2%, a 3.7-percentage point decrease from November's 48.9%.
- Customers' Inventories: 'Too low', with a figure of 43.3%, a 1.4-percentage point decrease from November's 44.7%.
- Prices: Increased, with a figure of 58.5%, the same as November's reading.
- Backlog of Orders: Contracted, with a figure of 45.8%, a 1.8-percentage point increase from November's 44%.
- New Export Orders: Contracted, with a figure of 46.8%, a 0.6-percentage point increase from November's 46.2%.
- Imports: Contracted, with a figure of 44.6%, a 4.3-percentage point decrease from November's 48.9%.
The report also highlights the following:
- Overall Economy: Continued in expansion for the 68th month after one month of contraction in April 2020.
- Contraction in GDP: 85% of the sector's GDP contracted in December, compared to 58% in November.
- Strong Contraction: The percentage of manufacturing GDP in strong contraction (45% or lower) increased to 43%, compared to 39% in November.
The report includes detailed responses from respondents, highlighting challenges and opportunities in various industries, such as chemical products, machinery, computer & electronic products, transportation equipment, and more.
The report concludes with a comprehensive overview of the manufacturing sector's performance in December 2025, including a detailed breakdown of the Manufacturing PMI and its components, as well as a historical perspective on the sector's performance over the past 12 months.
