---
title: "Affected by production slowdown and weak demand, the U.S. manufacturing sector has contracted for eight consecutive months"
type: "News"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/news/264058225.md"
description: "U.S. manufacturing continued to contract in October, remaining in a contraction phase for eight consecutive months, primarily affected by slowing production and insufficient demand. According to data from the Institute for Supply Management (ISM), the manufacturing PMI index fell to 48.7 in October, below the neutral line of 50, and the manufacturing output index also saw a significant decline. Although the drop in raw material prices has eased cost pressures, manufacturers face multiple challenges from trade policy uncertainty and weak customer demand, and manufacturing is expected to remain sluggish in the fourth quarter"
datetime: "2025-11-03T15:59:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/264058225.md)
  - [en](https://longbridge.com/en/news/264058225.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/264058225.md)
---

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# Affected by production slowdown and weak demand, the U.S. manufacturing sector has contracted for eight consecutive months

According to the Zhitong Finance APP, U.S. factory activity continued to contract in October, marking eight consecutive months in the contraction zone, with production slowdown and weak demand continuing to drag down the manufacturing sector.

The Institute for Supply Management (ISM) released data on Monday showing that the manufacturing PMI index fell 0.4 points to 48.7 in October, remaining below the neutral line of 50, and has been hovering in a narrow range for most of this year.

The manufacturing output index plummeted 2.8 points to 48.2, entering the contraction zone for the second time in three months. Due to insufficient orders, the demand for labor from businesses remains sluggish, with the ISM employment index contracting for nine consecutive months. Although there was a slight improvement from September, it still remains in the contraction zone.

As raw material prices have retreated, cost pressures in the manufacturing sector have eased. The ISM raw materials payment prices index dropped nearly 4 points to 58, the lowest level this year, having cumulatively decreased nearly 12 points since tariffs were officially implemented in April. Thomas Ryan, an economist at Capital Economics, noted, "The price index falling to 58 is the lowest level since the implementation of tariffs, returning to the average of the past decade, indicating that the worst phase of cost pressure in manufacturing due to tariffs may have passed."

Due to the U.S. government shutdown, the release of official economic data has been hindered, leading the market and policymakers to rely more on data from private institutions like ISM. The official non-farm payroll report originally scheduled for release on Friday is also expected to be delayed.

In October, 12 manufacturing sectors contracted, with the textile, apparel, and furniture industries performing the worst; only 6 sectors recorded growth, including basic metals and transportation equipment. The survey showed that manufacturers are generally facing multiple pressures from trade policy uncertainty, supply chain adjustments, and weak customer demand.

New orders in October contracted for the second consecutive month, although the rate of contraction slowed compared to September, backlogged orders continued to decrease. Manufacturers' inventories saw the largest drop in a year, while customer inventories remain low, theoretically providing space for a rebound in subsequent orders, but short-term demand still appears weak.

Analysts pointed out that against the backdrop of fluctuating tariff policies, a global manufacturing slowdown, and cautious U.S. corporate capital expenditures, the recovery momentum in manufacturing is limited, and a sluggish pattern is expected to persist in the fourth quarter. While easing cost pressures may help restore profits, insufficient demand remains a key bottleneck

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