Story perspectives

Manufacturing PMI Drops Again, Job Cuts Loom Ahead

1/5/2026

Summary

Story summary

The Institute for Supply Management (ISM) Manufacturing PMI fell to 47.9 in December 2025, the third consecutive contraction.
The decline was driven by reduced production and inventories in manufacturing.
New orders and backlog of orders improved, offering some hope for recovery.
The Employment Index fell to 44.0, signaling ongoing job cuts in factories.
Production showed a slight growth at 51.4, with analysts monitoring whether demand and price pressures influence policy.

History

Historical Context

The 2007-2009 Great Recession, triggered by the housing market collapse and subprime mortgage crisis, saw the U.S. unemployment rate peak at 10% in October 2009. The ISM Manufacturing PMI fell to 33.1 in December 2008, reflecting severe economic contraction. Today’s PMI decline to 47.9 indicates ongoing manufacturing challenges, suggesting potential policy shifts as analysts evaluate economic demand and pressures.

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Story summary

The Institute for Supply Management (ISM) Manufacturing PMI fell to 47.9 in December 2025, the third consecutive contraction.
The decline was driven by reduced production and inventories in manufacturing.
New orders and backlog of orders improved, offering some hope for recovery.
The Employment Index fell to 44.0, signaling ongoing job cuts in factories.
Production showed a slight growth at 51.4, with analysts monitoring whether demand and price pressures influence policy.

1 / 2