U.S. ISM Manufacturing PMI Report Released Today
U.S. ISM Manufacturing PMI Report Released Today
The Institute for Supply Management (ISM) issued its August manufacturing PMI report on Tuesday, September 2, 2025, providing fresh insight into the state of U.S. factory activity. According to the report, the ISM Manufacturing PMI stood at 48.7 when the data became available this day. This marks a slightly higher reading compared to the previous month, yet it still lies below the key threshold of 50 that distinguishes expansion from contraction.
Although manufacturing continues to face headwinds, there was a notable uptick in new orders, which reached 51.4—a significant improvement and the first such rise in seven months. That said, production measured 47.8, indicating that actual output remained under pressure .
The PMI reading reflects a sixth consecutive month of contraction in the manufacturing sector, underscoring persistent challenges. This downturn is partly attributed to the ongoing impact of tariffs and weakened industrial demand . However, broader investment in artificial intelligence (AI) technologies is providing a helpful tailwind for some manufacturing segments. Spending on intellectual property surged at its fastest pace in four years during the second quarter, alongside strong equipment investment .
Other key components of the ISM survey reveal that supplier deliveries have slowed slightly, with the delivery index rising, while input prices remain elevated, recorded at 63.7 . These elevated prices suggest potential inflationary pressures may materialize as costs eventually pass through the supply chain.
In markets, the release of the PMI prompted muted reactions—equity indexes saw minor declines, reflecting caution amid continued manufacturing weakness and uncertainty around economic policy outlooks.
Overall, this report issued today reinforces that the U.S. manufacturing sector remains under strain. Though the rise in new orders offers a glimmer of improvement, the snapshot of September 2, 2025, makes clear that production and employment in factories are yet to recover fully. The data will likely shape expectations for policy responses in coming weeks, as business leaders and central bankers reassess the economic trajectory.
