From Yahoo Finance: 2025-06-02 08:15:00

The manufacturing industry’s struggle with Trump’s tariffs continues in May, with demand down and prices up. ISM’s index hit 48.5%, below 50% indicating contraction. Production rose slightly to 45.4% despite conservative manufacturers. Imports dropped to 39.9%, the lowest since 2009, leading to concerns about future production.

Deliveries were slow due to port congestion over import cost disagreements. ISM’s economic forecast predicts only 0.1% revenue growth for the year. Trump’s aluminum and steel tariff hikes to 50% add to manufacturers’ woes. S&P’s May PMI report shows industry expansion, with some optimism for upcoming trade stability.

S&P’s report warns of a short-term rebound in the industry despite some renewed confidence. Domestic demand outweighs foreign orders due to tariff policies. Continued uncertainty around tariffs is the main theme in both ISM and S&P reports, impacting companies’ ability to operate efficiently.

Read more: Manufacturing continues to stall as the industry grapples with tariff uncertainty: PMI