US manufacturing industry shrank at the highest rate in four months in November, with the purchasing price index rising for the first time in five months.

The U.S. manufacturing sector showed signs of weakness again in November. Data released by the Institute for Supply Management (ISM) showed that the manufacturing index for the month fell by 0.5 points to 48.2, marking the ninth consecutive month below the 50 threshold and the largest contraction in four months. This reflects that businesses are still struggling with weak demand and cost pressures, unable to escape from long-term stagnation. The latest survey shows that U.S. manufacturers are being hit by multiple factors such as trade policy uncertainty, rising tariff costs, and customers delaying orders. The ISM's "Prices Index" saw its first increase in five months in November, up by about 8 points from the same period last year, indicating a renewed increase in raw material costs. Demand side performance is particularly weak. The new orders index fell at the fastest rate since July, and backlogs of orders saw the largest decline in seven months. Susan Spence, chair of the ISM Manufacturing Survey Committee, stated that uncertainty about tariffs is becoming a key reason for customer hesitation: "We do not see any clear positive turning points, unless tariff costs become clearer, customers will continue to delay orders." Weak demand has also led to further reductions in labor force. About 25% of manufacturing companies reported job cuts in November, the highest proportion since mid-2020. Although the production index rebounded to the fastest expansion in four months this month, overall output is still fluctuating significantly, making it difficult to fill the pressure brought by declining orders and employment. In terms of industry performance, there were 11 manufacturing industries that contracted in November, including clothing, wood, paper products, and textiles; only 4 industries saw growth, including computers and electronic products, but this was the lowest in nearly a year. Some industry survey comments further highlight the impact of tariffs on supply chains and business decisions. Companies in the machinery industry reported longer import transportation times and customers requesting earlier deliveries; transportation equipment companies stated that they are implementing structural adjustments due to the tariff environment, including layoffs, new shareholder guidance, and shifting production overseas; the chemical industry noted that tariffs and economic uncertainty continue to suppress demand for construction-related products; metal processing companies reported extreme price fluctuations in raw materials, leading to longer delivery times due to reduced suppliers; electronic products manufacturers pointed out that overseas procurement is still cheaper than domestic production based on tariffs and landing cost considerations. Furthermore, supplier delivery times accelerated for the first time in four months in November, indicating a slight relief in supply chain pressures. Inventories for manufacturers and customers continue to decline, but the rate of decline has slowed compared to October. Overall, the U.S. manufacturing sector remains mired in the "triple pressures" of weak demand, rising costs, and policy uncertainty. With the tariff outlook still unclear and businesses lacking the willingness to replenish inventories, the manufacturing industry is unlikely to see a substantial turnaround in the short term.