Manufacturing Sector Contracts for Fourth Straight Month (.PDF Download)

July 21, 2025
June marked the fourth consecutive month of contraction as manufacturers deal with weakening demand and tariff uncertainty.

The nation’s manufacturing sector continues to contract, with June marking its fourth straight month of decline, according to the latest Manufacturing ISM® Report on Business®. The PMI came in at 49 in June, indicating contraction in the sector (a sub-50 PMI signals contraction, while a reading above 50 reflects growth). The Institute for Supply Management (ISM) says weak demand, falling backlogs and ongoing job cuts are all weighing on the industry this year.