ISM Manufacturing Index – November 2025

The Institute for Supply Management (ISM) Manufacturing Index fell 0.5 points month over month to 48.2 in November, coming in below the forecast of 50.

A reading below 50 indicates contraction in U.S. manufacturing activity. The New Orders subindex registered 47.4, also signaling a modest slowdown in demand.

The ISM index is derived from surveys of 300 purchasing managers across 17 industries. It is a diffusion index, where readings above 50 indicate expansion and readings below 50 indicate contraction.

Subindex Performance:

• Backlogs: 44.0
• Inventories: 48.9

In November, four manufacturing industries reported growth: Computer & Electronic Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; and Machinery.

At the same time, 11 industries reported contraction, including Apparel, Leather & Allied Products; Wood Products; Paper Products; Textile Mills; Fabricated Metal Products; Petroleum & Coal Products; Chemical Products; Nonmetallic Mineral Products; Furniture & Related Products; Transportation Equipment; and Plastics & Rubber Products.

Respondents noted continued challenges across key manufacturing sectors:

“The unstable market has made pricing fluctuate in a very volatile way; I have had to reduce suppliers for raw materials to maintain a better direct cost structure. Reducing my suppliers has reduced the availability of some items and created longer lead times.” - (Fabricated Metal Products)

At Gerdau, we closely monitor the ISM Manufacturing Index as a key indicator of both current conditions and near-term expectations in U.S. manufacturing. This data helps us assess demand trends across key steel-consuming industries and better understand the evolving market landscape.