US Factory Floor Flashes Red: ISM Manufacturing PMI Drops, Fueling Rate Cut Bets

The Institute for Supply Management’s (ISM®) November 2025 Manufacturing PMI® report delivered a sobering message to markets: the factory sector is weakening, and contraction is deepening. The headline figure of 48.2%—a 0.5 percentage point drop from October—marks the ninth consecutive month of contraction for the manufacturing industry.