Due to the slowdown in production and weak demand, the US manufacturing sector has been shrinking for eight consecutive months.

Manufacturing activity in the United States continued to contract in October, marking the eighth consecutive month of decline as slowing production and weak demand continued to drag down the manufacturing sector. Data released by the Institute for Supply Management (ISM) on Monday showed that the October Manufacturing PMI Index fell by 0.4 points to 48.7, remaining below the 50 mark, and has been hovering in a narrow range for most of this year. The Production Index for manufacturing dropped by 2.8 points to 48.2, marking the second time in three months that it has entered the contraction zone. Due to insufficient orders, business demand for labor remained weak, with the ISM Employment Index shrinking for the ninth consecutive month. Although there was slight improvement compared to September, it still remained in the contraction zone. With raw material prices falling, cost pressures on manufacturing have eased somewhat. The ISM Raw Materials Price Index fell by nearly 4 points to 58, the lowest level this year and almost 12 points lower since the implementation of tariffs in April. Thomas Ryan, North American economist for Capital Economics, pointed out that "the price index falling to 58, its lowest level since the tariffs were implemented, has returned to around the average of the past 10 years, indicating that the worst phase of manufacturing cost pressure due to tariffs may have passed." With the U.S. government shutdown affecting official economic data releases, markets and policymakers are increasingly relying on private institutions like ISM for data. The official non-farm payrolls report, originally scheduled for release on Friday, is also expected to be delayed. In October, 12 manufacturing industries contracted, with textiles, clothing, and furniture performing the worst. Only 6 industries recorded growth, including basic metals and transportation equipment. The survey showed that manufacturers are facing multiple pressures from trade policy uncertainty, supply chain adjustments, and weak customer demand. New orders continued to decline for the second consecutive month in October, with the rate of contraction slowing compared to September, but backlogs are still decreasing. Manufacturers' inventories saw their largest drop in a year, while customer inventories remained low, theoretically providing space for a rebound in future orders, but demand remains weak in the short term. Analysts point out that against the backdrop of fluctuating tariff policies, a slowdown in global manufacturing, and cautious capital expenditures by U.S. companies, the manufacturing sector has limited momentum for recovery, with the fourth quarter expected to remain sluggish. While the easing of cost pressures may help repair profits, insufficient demand remains a key bottleneck.