Archive · 2 Aug 2025
US Manufacturing Slumps Further in July Amid Tariffs, Employment Drops
In July, US manufacturing continued to shrink for the fifth month in a row.
This is because factories are not getting as many orders and are cutting jobs.
The PMI, a measure of manufacturing health, is below 50, showing things are getting worse.
Factory employment is at its lowest point in over five years.
Tariffs, or taxes on imported goods, are making raw materials more expensive.
The situation is made more difficult by the fear of increased tariffs and a slowdown in demand.
US manufacturing activity contracted for the fifth straight month in July.
Factory employment hit its lowest level in over five years.
The ISM's Manufacturing PMI fell to 48.0 in July, indicating contraction.
Rising tariffs on imported raw materials increased cost pressures.
Ongoing tariff-driven inflation remains a major concern for manufacturers.
- Who
- Institute for Supply Management (ISM)
- What
- US manufacturing activity contracted.
- When
- July
- Where
- US
- Why
- Due to declining demand and rising input costs.
Concerns
Neutral
Impact of Tariffs
Concerns
Rising tariffs increase manufacturing costs, potentially hindering growth.
Neutral
No opposing view was present in the article.
- PMI July
- 48.0
- PMI June
- 49.0
- Employment Index
- 43.4 (lowest since July 2020)
- Supplier Deliveries Index
- 49.3
- Input Costs
- 64.8
Sources
India's Manufacturing Sector Growth Strengthens In July To 16-Month High Of 59.1
India's manufacturing sector growth hits 16-month high in July
July Manufacturing At 16-Month High
Mfg PMI rises to 16-mth high in July