The sluggishness of the U.S. manufacturing sector has dragged into 2026, with employees now feeling the pain. A reading above 50 indicates growth. The December reading is the tenth consecutive reading below that level. The January 2025 reading was positive at 50.9, snapping a streak of 26 consecutive months below 50, after all revisions, one of the worst stretches for manufacturers on record. The Institute for Supply Management's Purchasing Managers Index, or PMI, came in at 47.9 for December, down from 48. ...

Economic Overview - Chinese factory activity expanded for the first time in eight months in December, driven by increased orders ahead of holidays and builders completing projects [1] - The official purchasing managers index (PMI) for manufacturing rose to 50.1 in December, indicating expansion, with a similar private sector survey also reporting 50.1 [2] Manufacturing Sector Insights - The improvement in manufacturing activity is attributed to easing trade tensions with the U.S. and increased production in anticipation of the New Year holidays [3] - The official PMI for high-tech manufacturing reached 52.5 in December, up 2.4 percentage points from the previous month, while equipment manufacturing and consumer goods industries both recorded PMIs of 50.4 [5] Employment and Export Trends - Despite an overall increase in orders, new export sales declined slightly, and hiring weakened, indicating a marginal recovery in the manufacturing sector [6] - Large manufacturers increased output, but small and mid-sized enterprises, which are crucial for employment, remained in contraction [7] Economic Challenges - Some economists suggest that China's economic growth may be slower than official figures indicate, with ongoing challenges such as a slump in the property sector and excess capacity in various industries [8]

Group 1 - The U.S. manufacturing sector has contracted for nine consecutive months, as indicated by the ISM manufacturing PMI, while the S&P 500 has reached all-time highs, a rare occurrence that has only happened three times before [1][2]. - The manufacturing sector's contribution to the U.S. economy has significantly decreased, now accounting for less than 10%, down from over 25% when the PMI began in 1948 [3]. - A prolonged period of weakness in manufacturing is attributed to inventory depletion following the supply chain crisis and the initial effects of tariff actions expected in 2025 [4]. Group 2 - Customer inventories data from the PMI indicates that inventories are "too low," suggesting a bullish outlook for the manufacturing sector as companies will need to replenish their stocks [5]. - Tariff actions are intended to support U.S. manufacturing, and investments in expanding capacity in 2025 are anticipated to yield future benefits [5]. - Investors are encouraged to consider industrial economy stocks in 2026, as historical trends suggest an impending recovery in the industrial sector [6].

The American manufacturing sector contracted for the ninth month in a row during November as it faced flagging order volumes, higher-priced inputs and cost pressures related to the United States government’s tariff policies. That’s according to the Institute for Supply Management’s (ISM) purchasing managers index (PMI) report, which registered 48.2 percent last month—a 0.5 percent decrease from the 48.7 percent seen in October. More from Sourcing Journal New orders fell for a third consecutive month in N ...

A PMI under 50? That’s not just an economist’s signal — that’s a real-world indicator for anyone pulling freight. The September 2025 ISM Manufacturing PMI came in at 49.1, signaling the 7th straight month of contraction in U.S. manufacturing. And while some might brush it off as a Wall Street problem, if you’re a small carrier or an owner-operator, this number hits you at the docks. So, let’s break it down plainly. What does a 49.1 really mean? What kind of freight is softening? Where can we still find st ...