ISM's Purchasing Managers Index Rose to 48.7% in August

Tempe, AZ, September 2, 2025-The Manufacturing Purchasing Managers Index (PMI) registered 48.7% in August, a 0.7-percentage point increase compared to the 48% recorded in July, say the nation's supply executives in the latest ISM® Manufacturing PMI Report. 

The overall economy continued in expansion for the 64th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.3%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index indicated growth in August following a six-month period of contraction; the figure of 51.4% is 4.3 percentage points higher than the 47.1% recorded in July. 

The August reading of the Production Index (47.8%) is 3.6 percentage points lower than July’s figure of 51.4%. 

The Prices Index remained in expansion (or ‘increasing’) territory, registering 63.7%, down 1.1 percentage points compared to the reading of 64.8% reported in July. 

The Backlog of Orders Index registered 44.7%, down 2.1 percentage points compared to the 46.8% recorded in July. 

The Employment Index registered 43.8%, up 0.4 percentage point from July’s figure of 43.4%.

The Supplier Deliveries Index indicated slower delivery performance after one month in ‘faster’ territory, which was preceded by seven consecutive months in expansion (or ‘slower’) territory. The reading of 51.3 percent is up two percentage points from the 49.3% recorded in July. (Supplier Deliveries is the only ISM PMI Reports index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) 

The Inventories Index registered 49.4%, up 0.5 percentage point compared to July’s reading of 48.9%.

The New Export Orders Index reading of 47.6% is 1.5 percentage points higher than the reading of 46.1% registered in July. The Imports Index registered 46%, 1.6 percentage points lower than July’s reading of 47.6%.

The seven manufacturing industries reporting growth in August-listed in order-are textile mills; apparel, leather & allied products; nonmetallic mineral products; food, beverage & tobacco products; petroleum & coal products; miscellaneous manufacturing; and primary metals.