The ISM Manufacturing PMI fell to 48 in July 2025 from 49 in June, missing expectations for an increase to 49.5. The reading marked the fifth consecutive month of contraction in the manufacturing sector and was the weakest since October of last year. The largest negative contributions came from declines in supplier deliveries (45.7 vs. 46.7) and employment (43.4 vs. 45.0). "The Employment Index dropped further into contraction as panelists indicated that managing head count is still the norm at their companies, as opposed to hiring. The mixed indicators in output suggest companies still being cautious in their hiring even with an increase in production”, Susan Spence, chair of the ISM Manufacturing Business Survey Committee, said. On the positive side, production accelerated (51.4 vs. 50.3), while the declines in new orders (47.1 vs. 46.4) and the backlog of orders (46.8 vs. 44.3) moderated. Price pressures also eased, with the prices index falling to 64.8 from 69.7.