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U.S. Manufacturing Extends Slide as Tariffs Bite, Firms Cut Jobs and Shift Production

New survey plus payroll figures point to weakening demand as recent duties on vehicles and trucks raise costs.

Overview

  • The ISM manufacturing PMI fell to 48.2 in November, marking a ninth consecutive month in contraction.
  • The ISM survey’s employment gauge dropped to 44%, indicating softer factory hiring heading into year-end.
  • ADP reported private employers shed 32,000 jobs in November, underscoring broader labor softness affecting manufacturers.
  • BLS data show factory employment fell by 6,000 in October, bringing manufacturing job losses since April’s tariff actions to about 59,000.
  • Surveyed manufacturers linked tariffs to staff reductions and added offshoring, with a new 25% duty on medium- and heavy-duty trucks and parts taking effect Nov. 1 and multilateral and Fed reports warning of lagged effects.