US manufacturing activity declines for 6th straight month

US manufacturing activity declined for the sixth consecutive month in August, weighed down by the ongoing impact of tariffs.

The Institute for Supply Management (ISM) said in a statement, today Sept. 2, that the manufacturing purchasing managers’ index (PMI) rose slightly to 48.7 points in August from 48.0 points in July, but remained below the 50-point threshold that separates growth from contraction.

The report showed that the new orders index climbed to 51.4 points after six months of decline, while the production index slipped to 47.8 points from 51.4 points in July.

The suppliers’ deliveries index increased to 51.3 points, pointing to longer lead times for raw materials, which helped keep the input prices index elevated, though it eased slightly to 63.7 points.

ISM noted widespread concern among manufacturers about the effect of tariffs on production costs and pricing. Companies in the food and electronics sectors reported that higher tariffs are pressuring profit margins and prompting a reassessment of production relocation plans.

Meanwhile, transportation equipment manufacturers described conditions as worse than during the 2008–2009 global financial crisis, warning of a near standstill in domestic demand amid persistent uncertainty over trade policies.