Tariffs and Weak Demand Weigh on US Manufacturing

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The U.S. manufacturing sector continues to face pressure from high tariffs, soft global demand, and uncertain trade policies.
While optimism briefly surged earlier in the year, ISM’s September report shows uneven recovery — with rising prices but shrinking exports and imports.
Despite this slowdown, ISM notes that manufacturing now makes up a smaller share of the U.S. economy, meaning contraction doesn’t necessarily imply a recession.
Still, business leaders warn of rising costs: one transportation equipment manager said tariffs have pushed prices “up to 20% higher,” squeezing profits across the supply chain.