US manufacturing activity falls to its lowest level of 2025, according to PMI.

U.S. manufacturing activity reached its lowest point in 2025, with the Purchasing Managers’ Index (PMI) falling to 47.9% in December, indicating contraction. Although there were slight improvements in areas like new orders and backlog, production showed a minor increase despite ongoing tariff uncertainties and weak demand. ISM’s Susan Spence highlighted concerns about the sustainability of recent production growth, noting that employment is stagnating, and many companies are managing headcounts rather than hiring. Analysts predict a challenging outlook for early 2026 if demand does not improve.