The bifurcated nature of the U.S. manufacturing industry continued in October. Despite a couple of pockets of strength, such as aerospace, electricity, and AI, U.S. manufacturing is struggling. Tariff uncertainty continues to weigh on industrial businesses that have been starved for growth.
The Institute for Supply Management’s Purchasing Managers Index, or PMI, came in at 48.7 for October, down from 49.1 in September. Economists surveyed by FactSet expected a reading of 49.6, so things were weaker than expected.
A reading above 50 indicates growth. The October reading is the eighth consecutive reading below that level. The January 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.