U.S. manufacturing activity sank to a 15-month low in October 2024

The Institute for Supply Management’s (ISM) October Manufacturing PMI® report highlights ongoing challenges in U.S. manufacturing, with the overall index at 46.5%, signaling contraction across the board. This marks the 23rd contraction in the past 24 months.

Breaking it down, New Orders are at 47.1%, Production at 46.2%, and Backlogs lagging at 42.3%—all indicators of slowed activity. In fact, every metric except Prices is contracting. Employment shows slight improvement (not as low as last month but still below 50), while inventories remain low, and price pressures continue to rise, casting a cautious outlook for the sector.

For the past few months, companies may have held back on investments, “on the sidelines” ahead of the U.S. Presidential election. Now, with Donald Trump’s return to the White House, we might anticipate policies favoring industry growth, potentially sparking a shift in sentiment and planning for the year ahead. A clearer political landscape could mean a stronger outlook for our manufacturers.