ISM Manufacturing Index for SEPTEMBER 2026

The Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for September, 2026:

=========

• Actual: 54.5% (-0.1 point month-on-month)

=========

Previous month: 54.6%

=========

Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector expanded in September for the ninth consecutive month, say the nation’s supply executives in the latest ISM® Manufacturing PMI® Report..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

• "...'Better performance was driven primarily by temporary market effects, including (1) geopolitical uncertainties, (2) customers bringing forward purchases, (3) delayed raw material price increases and (4) reduced competitor capacity. However, these factors do not signal sustained recovery: Structural challenges facing the chemical industry remain, including overcapacity, persistent pricing pressures and protectionist trade policies.'
   [Chemical Products] 

• 'Supply chain performance has improved compared to prior years, with lead times largely normalized. Cost pressures persist in select raw materials, transportation and labor categories, requiring continued focus on supplier management and cost control. We remain cautiously optimistic about business conditions over the next several quarters.'
   [Chemical Products] 

• 'The U.S. tariffs schedule is providing challenges. Finding alternate sources of supply outside of China, local pushback on data centers in the U.S. and continuing material/component shortages are affecting business.'
   [Computer + Electronic Products] 

• 'Manufacturing activity remains stable, with a continued focus on cost optimization, supplier negotiations and supply base consolidation. We are actively evaluating alternative sources in several categories to improve supply resilience and reduce costs.
  
  While material availability has generally improved compared to prior periods, qualification requirements and supplier capacity constraints continue to influence sourcing decisions for certain critical materials and components.
  
  Capital and operational spending remain focused on productivity, efficiency and transformation initiatives.'
   [Computer + Electronic Products] 

• 'Orders have doubled yet again, and delivery times have also doubled, in the semiconductor, electronics and government sectors, with remaining sectors flat to down. Coupled with supply chain lead times and pricing pressures, the factory backlog has nearly doubled. Canada tariffs have impacted cross-border costs and left our supply chain team scrambling -- those supply chains took years to develop and nurture -- hurting the very lead times government buyers are concerned about.'
   [Machinery] 

• 'Order levels remain strong and elevated; we have orders through year-end at above forecast levels. Our biggest challenge continues to be a severe shortage of workers, limiting our production output to meet demand. The second challenge is general availability of steel; the market is getting worse, and more production delays are expected as we gap out of needed material.'
   [Fabricated Metal Products] 

• 'Raw metals continue to be challenging, especially with the uncertain nature of tariffs being on and off again. New tariffs against Canada have drastically increased costs for capital expenses as well as assemblies.'
   [Electrical Equipment, Appliances + Components] 

• 'Fuel costs are still affecting transportation costs and the overall cost of goods. Beef costs remain high, with no relief in sight.'
   [Food, Beverage + Tobacco Products] 

• 'Higher interest rates slow down the growth of new construction projects; we also have to face up to the higher cost of components from overseas due to tariffs and freight rates. Due to booming demand of AI and data centers, domestic steel capacity has been stretched and pushed. Higher steel costs each month increase our raw-material and finished-goods costs.'
   [Machinery] 

• 'Every month, we are faced with new headwinds created by this administration. This month, it is the trade war with Canada, which every day is getting worse -- causing prices to go up and uncertainty that creates massive disruption.
  
  Buying continues to get pushed out indefinitely as customers don’t want to spend on capital expenditures until there is more certainty of costs and demand.
  
  The only thing that is predictable is the chaos that is created by these trade policies.'
   [Transportation Equipment]..."

==========

CHART: ISM Manufacturing Index

SEPTEMBER 2026 Update

=========

DATA: ISM Manufacturing Index

12-Month History
SEPTEMBER 2026 Update

=========

=========

• Click here to view the complete ISM report

=========

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ISM Non-Manufacturing (SERVICES) Index for SEPTEMBER 2026

The Institute for Supply Management (ISM®) released their Non-Manufacturing / Services Index (NMI®) for September, 2026:

==========

• Actual: 54.9%  (-0.5 point month-on-month change)

==========

Previous month: 55.4%

==========

The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

==========

From Today' Report:

 

 "...Economic activity in the services sector continued to expand in September, say the nation’s purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® registered 54.9%, the 27th consecutive month in expansion territory..."

 
===========

Here's A Sampling Of Comments
Made By Survey Participants:

• "...'The high cost of diesel fuel has increased the cost of freight dramatically. The high cost is hard on farmers due to the high use of diesel fuel at harvest. The high cost of crude oil has driven nitrogen (for agronomic use) prices to near record highs.'
   [Agriculture, Forestry, Fishing + Hunting] 

• 'Interest rates continue to drive buyers out of the market. Half of buyers walking through the door cannot qualify to purchase.'
   [Construction] 

• 'Increased competition for deposits and higher funding costs are placing pressure on profitability and moderating growth expectations. Although projections have been revised downward, the bank continues to expect modest growth in both loans and deposits.'
   [Finance + Insurance] 

• 'Had vendor communications about more fuel charges and possible tariff reinstatement.'
   [Health Care + Social Assistance] 

• 'Demand across commercial client segments remains steady through September, though client decision cycles on discretionary capital projects remain cautious. Wage pressures and software licensing renewals continue to push operational expenses slightly higher, but freight and consumable material lead times have normalized.'
   [Information] 

• 'Oil and gas prices are still high, which encourages more production.'
   [Mining] 

• 'The cost of fuel continues to impact our cost of providing services.'
   [Other Services] 

• 'Shipping containers from overseas are double the cost, causing price increases.'
   [Retail Trade] 

• 'Business activity remains strong, but supply chain conditions continue to be challenging. Utilities and materials are experiencing slower availability, with steel particularly difficult to source domestically.
  
  We are increasingly having to place orders internationally to secure required materials.
  
  Strong business demand is putting additional pressure on supply, contributing to longer lead times, material availability issues and delays in project starts.'
   [Utilities] 

• 'Demand remains very strong. Manufacturers have very little breathing room to keep up with demand, and in some cases, typical lead times have slipped. They are not as aggressive on all opportunities and eager to cut prices to secure business.
  
  Weekly price increases are the norm these days on commodities products (copper, aluminum and polyvinyl chloride). We are constantly reaching out to any and all suppliers we conduct business with to secure product to meet customer demand.'
   [Wholesale Trade]..."

========== 

• Click here to view the complete ISM report
  

==========

CHART: ISM Services Index

(NMI®) SEPTEMBER 2026 Update

==========

    

CHART: ISM Services Index
12-Month History
SEPTEMBER 2026 Update

 ==========

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ISM Non-Manufacturing (SERVICES) Index for AUGUST 2026

The Institute for Supply Management (ISM®) released their Non-Manufacturing / Services Index (NMI®) for August, 2026:

==========

• Actual: 55.4%  (+1.3 points month-on-month change)

==========

Previous month: 54.1%

==========

The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

==========

From Today' Report:

 

 "...Economic activity in the services sector continued to expand in August, say the nation’s purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® registered 55.4 percent, the 26th consecutive month in expansion territory..."

 
===========

Here's A Sampling Of Comments
Made By Survey Participants:

• "...'General business conditions are positive. The challenges lie in managing through the dynamic nature of the administration’s policies -- tariffs and [Iran invasion] -- that have caused numerous input cost headwinds for suppliers and us.'
   [Accommodation + Food Services] 

• 'The bond market pushed 30-year mortgage rates up to 6.67 percent, reducing affordability and moving prospective buyers back to the sidelines. The new-build housing market continues to slow with the selling season coming to a close and the start of the new school year. Rate buydowns and discounts have become the norm instead of the tool to drive traffic.'
   [Construction] 

• 'The [Iran invasion] and strain on the oil supplies has resulted in our paying higher cost for fuel. Locally, our economy continues to perform well, and our housing market is solid. We expect our enrollment to remain steady as long as the local economy stays strong.'
   [Educational Services] 

• 'Rising health-care costs, regulatory complexity and reimbursement pressure continue to drive a cautious purchasing environment within health insurers. Focus remains on cost management, supplier performance, operational efficiency and risk mitigation, resulting in increased scrutiny of supplier value, contract commitments and strategic investments.'
   [Finance + Insurance] 

• 'We received a few communications regarding tariffs that are being refunded. Fewer materials being back-ordered at this time.'
   [Health Care + Social Assistance] 

• 'Concerns about market trends, reduced hospital sources of revenue and increasing debt management creating reluctance of our customers to expand.'
   [Management of Companies + Support Services] 

• 'Business is picking up and forecast to increase over the next six months.'
   [Other Services] 

• 'The stacked Section 301 duties plus the newer forced-labor related tariffs are keeping landed costs elevated and forcing constant TCO recalculation. We are actively dual-sourcing and evaluating nearshoring options, but qualified capacity, lead times and quality consistency are limited for certain specialty materials and components. The results are higher inventory buffers, longer planning cycles, and margin pressure that we can only partially pass through. On the positive side, Florida ports (especially Port Everglades and the broader South Florida gateway) remain relatively fluid compared with the congestion spikes earlier in the year on the West Coast and in Europe.'
   [Professional, Scientific + Technical Services] 

• 'The memory shortage is continually getting worse. For devices requiring (memory) cards, inventory is low and prices are high.'
   [Retail Trade] 

• 'The electrical distribution industry volume demand and opportunities remain very strong. Commodities-based products of materials like copper, aluminum and polyvinyl chloride continue to have price increases and adjustments on a weekly basis. Geopolitical issues like tariffs continue to impact pricing as well. Supplier capacities are still strained due high market demands.'
   [Wholesale Trade]

========== 

• Click here to view the complete ISM report
  

==========

CHART: ISM Services Index

(NMI®) AUGUST 2026 Update

==========

    

CHART: ISM Services Index
12-Month History
AUGUST 2026 Update

 ==========

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ISM Manufacturing Index for AUGUST 2026

The Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for August 2026:

=========

• Actual: 54.6% (-1.0 point month-on-month)

=========

Previous month: 55.6%

=========

Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector expanded in August for the eighth consecutive month, say the nation’s supply executives in the latest ISM® Manufacturing PMI® Report..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

• "...'The economy is annoying; it is getting in the way of otherwise good business. We are making great new products but struggling to compete when prices escalate due to things like tariffs and the conflict in the Strait of Hormuz. I fear that the inflation caused by these factors will lead to lower sales and lower spending power of our customers. Call it inflation! At some point, it leads to an economic downturn or at least an economic pain for many consumers. It’s an uncertain year, our second in a row.'
   [Chemical Products]

• 'For our building products division, profitability is not far off from last year despite economic headwinds, as our specialty products have maintained their market share and sales. Specific to IT, the rising costs in component inputs have caused some budgetary constraints as we plan for the 2027 fiscal year. However, we largely been able to keep costs close to historic consumer price index averages.'
   [Chemical Products] 

• 'Supply chain situation, especially in the electronics market, is going through another crisis even bigger and more complicated than during and post COVID-19. That’s mainly due to AI infrastructure and uncertainties in the global market (for oil and other critical supplies) due to war in the Middle East and more complication on trade rules.'
   [Computer + Electronic Products] 

• 'Supply markets are increasingly challenging due to inflation and supply availability. Each month has been more difficult than the previous one. Starting to resemble the post-COVID-19 disruptive period.'
   [Computer + Electronic Products] 

• 'Prices continue to rise on all goods. Suppliers are noting that energy, steel and labor costs are increasing very quickly. We continue to try to move products around to offset costs. We have moved more products to offshore sources to try to minimize cost impacts.'
   [Machinery] 

• 'Photonics, high speed connectors, semiconductors and government orders are expanding significantly. Supply chains domestically and globally are difficult, with increases in lead times and cost.'
   [Machinery] 

• 'Commentary this month echoes that of recent months: (1) significant availability/price challenges in commodities heavily consumed by AI, (2) great uncertainty over when the Iran [invasion] will end, and (3) another round of shifting U.S. tariff policy. Despite these tensions, we continue to focus on what we can control, and the market for our products remains strong.'
   [Miscellaneous Manufacturing] 

• 'This month is a blur: Steel prices continue to climb as supply diminishes, aluminum is rising after dropping, and there are many holes on the plate side. Demand seems to be a seesaw. Our prediction ability continues to diminish, with the exception that the year will remain difficult until the end.'
   [Primary Metals] 

• 'High steel and aluminum prices (due to Section 232 tariffs) continue to make profitability a challenge. Uncertainty over the U.S.-Mexico-Canada Agreement is at the forefront of many customer conversations. Our industry has also been hit with countervailing and anti-dumping penalties, further raising the cost of equipment.'
   [Transportation Equipment] 

• 'Volume is consistent. Our main customer is shifting production from U.S. plants to Mexico plants.'
   [Transportation Equipment]..."

==========

CHART: ISM Manufacturing Index

AUGUST 2026 Update

=========

DATA: ISM Manufacturing Index

12-Month History
AUGUST 2026 Update

=========

=========

• Click here to view the complete ISM report

=========

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ISM Manufacturing Index for JULY 2026

The Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for July 2026:

=========

• Actual: 55.6% (+2.3 points month-on-month)

=========

Previous month: 53.3%

=========

Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector expanded in July for the seventh consecutive month, say the nation’s supply executives in the latest ISM® Manufacturing PMI® Report..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

• “We are seeing a very opportunistic and reactive marketplace. If shortage items become available, we opportunistically buy. Some customers are reducing inventory; others are pulling forward demand. As many customers that are slowing down, an equal number are growing. It looks like a lot of shuffling and shifting market share.”
   [Chemical Products] 

• “We continue to operate in a favorable demand environment driven by growth in the semiconductor, AI, advanced packaging, and high-performance computing markets. Recent company reports indicate strong sales growth and continued investment in manufacturing capacity, technology and customer-support capabilities. This scenario supports a positive business outlook and creates opportunities to leverage increased purchasing scale across the enterprise.”
   [Computer & Electronic Products] 

• “Now that it seems the buildout of AI infrastructure globally is nearing real activation, products going into data centers are at full procurement and manufacturing ramp-up. Thus, demand for our semiconductor end products and connectivity (power, networking and photonics) is booming. Similarly, defense is at an all-time high, with most of our product orders going to these two industries. Order volumes for medical, industrial and consumer products are markedly lower.”
   [Machinery]

• “Aerospace and defense demand continues to be strong and growing, based on business backlogs. Competing for scare supply -- electronics, certain critical minerals and other categories — is challenging on-time fulfillment for our supply chains. This is expected to get worse with co-dependent sectors also remaining strong and restocking challenges for automotive electronics.”
   [Transportation Equipment] 

• “Continued tariffs on products utilized in our product lines are being monitored by the business, which is working to mitigate or limit tariff risk. Geopolitical risk, especially in the Middle East, pertaining to commodity and energy markets remains a concern. There has been some increased cost and transit time for rerouted shipments due to conflicts in the Red Sea, Strait of Hormuz and Suez Canal.”
   [Transportation Equipment] 

• “Business is still solid; we will increase revenue by 3 percent to 5 percent. We are considering foreign steel purchases for early next year because domestic steel mills are getting greedy.”
   [Fabricated Metal Products] 

• “No normalcy in sight in the world of metals. It makes me yearn for the coronavirus pandemic chaos, which was more manageable than whatever this is that we are in.  At least business is better; however, the components of good business are not. Sharp pricing downturns in aluminum will make things more interesting, as supply levels will prevent those decreases from taking hold across the board. Getting customers to understand that is not always easy.”
   [Primary Metals] 

• “The pricing volatility and lead-time extensions in this market are arguably worse than the pandemic era. During COVID-19, we saw a surge of price hikes and inventory buy-ups, which caused constraints that eventually leveled out. We are seeing nothing but consistent upward trends for both pricing and lead times that show no signs of slowing down. Specifically, 5-percent to 25-percent price increases for printed circuit board assembly components and 15-percent to 45-percent increases for bare boards are negatively impacting customer demand outlook into next year. This isn’t sustainable.”
   [Electrical Equipment, Appliances & Components] 

• “Our customers in Asia continue to procure elsewhere to avoid paying a tariff While the Iran [invasion] was paused, it was terrific to see fuel prices (and delivery costs) falling steadily. Now that skirmishes have resumed, we expect fuel to rise again.”
   [Paper Products] 

• “Definitely a downturn within several of our business units, mainly the consumer products division. High freight costs, both for truck and ocean, and longer lead times are concerning. Pricing was moving downward until the Iran [invasion] started again.”
   [Chemical Products]
  

==========

CHART: ISM Manufacturing Index

JULY 2026 Update

=========

DATA: ISM Manufacturing Index

12-Month History
JULY 2026 Update

=========

=========

• Click here to view the complete ISM report

=========

 

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ISM Non-Manufacturing (SERVICES) Index for JUNE 2026

The Institute for Supply Management (ISM®) released their Non-Manufacturing / Services Index (NMI®) for June, 2026:

==========

• Actual: 54.0%  (-0.5 point month-on-month change)

==========

Previous month: 54.5%

==========

The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

==========

From Today' Report:

 

 "... Economic activity in the services sector continued to expand in June, say the nation’s purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® registered 54 percent, the 24th consecutive month in expansion territory..."

 
===========

Here's A Sampling Of Comments
Made By Survey Participants:

• "We continue to experience higher prices due to the Persian Gulf conflict through rising diesel fuel costs and increased input costs for resin-based packaging. The brunt of the impact will be experienced in the third quarter (Q3) of 2026, but we are feeling the impact now. Suppliers are aggressively attempting to pass through price increases.”
   [Accommodation & Food Services] 

• “Extreme drought in Virginia is creating financial problems for farmers and the agricultural industry. Dramatically reduced spring crops harvest has created significant cost increases in feed expense. The barley grain crop was nearly totally lost due to the early hot weather and spring freeze. High fertilizer cost increases due to the Iran invasion and increased freight cost has driven cost for crops above breakeven levels on many farms. Many dairy farmers are struggling with crop shortages, high input cost and below milk price breakeven. The financial stress from higher cost due to the Iran invasion and drought-related forage losses has resulted in decreased spending in the agricultural sector.”
   [Agriculture, Forestry, Fishing & Hunting] 

• “In general, our company (commercial construction) is doing well. Pipeline is healthy for current and future work. Material pricing is higher and lead times on certain components in support of data center piping is elongating.”
   [Construction] 

• “In addition to the known semiconductor manufacturing issue, now there are concerns regarding memory availability that is materially impacting our OEM’s purchasing patterns, which is affecting availability and driving my company’s purchasing decisions, including how much longer we are sweating our assets, how frequently we refresh, and how we approach maintenance contracts.”
   [Finance & Insurance] 

• “Despite economic headwinds like persistent inflation, patient volumes and overall business activity remain strong reflected mainly by outstanding revenue performance. Supply chains remain resilient as well; back orders are at a historical low, and few if any critical products are experiencing difficulties. Labor is steady, as we continue to add full-time workers while the forecast remains positive. Given the continuation of the conflict in the Middle East, we are beginning to hear that cost of goods increases are on the horizon but have yet to materialize. Cost increases are in focus for the next quarter.”
   [Health Care & Social Assistance] 

• “From a strategic supply chain perspective, we are seeing increased complexity in managing total landed cost due to tariffs, import/export constraints and duty recovery mechanisms, requiring more proactive coordination across sourcing, logistics and compliance teams. Recent discussions internally also highlight the impact of tariff programs and duty drawback evaluations on purchasing strategies.”
   [Mining] 

• “Demand remains strong in infrastructure, environmental, and resilience projects, while procurement faces persistent labor inflation, supplier capacity constraints, and regulatory complexity—particularly in California and other high-cost markets. Labor-driven categories remain elevated despite easing goods inflation. The impact is higher rates, longer lead times, and increased importance of capacity assurance vs. lowest-cost sourcing.”
   [Professional, Scientific & Technical Services] 

• “Business has been very strong during what is usually a less active time of the year. Pricing is stable, and employment just where we want it to be. Supply chain strong with no challenges.”
   [Retail Trade] 

• “The utility industry continues to experience extended lead times, supply-chain constraints, material shortages, and pricing volatility. As a result, suppliers are often limiting quotation validity periods, with many RFQs carrying expiration dates as short as 24 hours. These conditions require timely evaluation and procurement decisions to mitigate the risk of price changes and availability issues.”
   [Utilities] 

• “We are experiencing continued sequential top-line growth driven mostly by increased prices.”
   [Wholesale Trade]
  

========== 

• Click here to view the complete ISM report
  

==========

CHART: ISM Services Index
(NMI®) JUNE 2026 Update

==========

  

CHART: ISM Services Index
12-Month History
JUNE 2026 Update

 ==========

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ISM Manufacturing Index for JUNE 2026

The Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for June, 2026:

=========

• Actual: 53.3% (-0.7 point month-on-month)

=========

Previous month: 54.0%

=========

Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector expanded in June for the sixth consecutive month, say the nation’s supply executives in the latest ISM® Manufacturing PMI® Report..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

• “The conflict in Iran has impacted pricing in every category of raw materials. Especially, items that have a heavy concentration of oil in the components like our adhesives.”
   [Chemical Products] 

• “Continued pressure from conflict in Middle East is resulting in a more conservative approach to capital expenditures. We are seeing an increase in consumables and services purchasing from sectors like chemical analysis, per- and polyfluoroalkyl substances (PFAS), and environmental and pharmaceutical testing.”
   [Computer & Electronic Products] 

• “General purchasing operations are being shaped by (1) moderating but still elevated inflation, (2) higher interest rates and (3) continued policy uncertainty, particularly around tariffs and global trade. While overall economic growth remains resilient, it is slowing as consumer spending weakens under pressure from higher costs for energy and essential goods, reducing demand visibility and increasing cost sensitivity for buyers. Meanwhile, supply chains have stabilized compared to prior years but remain structurally complex, with trade policy volatility, geopolitical tensions and regulatory changes now ongoing cost drivers rather than temporary disruptions. Our organization continues balancing cost control with resilience, shifting sourcing strategies, tightening inventories and prioritizing supplier diversification and risk management.”
   [Computer & Electronic Products] 

• “Retail electronics sales seem to have stabilized to some extent. The pause in tariff changes has been welcomed the last two months, but it’s only a matter of time before more confusion is introduced.”
   [Electrical Equipment, Appliances & Components] 

• “Input costs remain elevated across key categories, driven largely by Middle East conflict impacts and ongoing tariff uncertainty. Supplier lead times have stretched, which is influencing our inventory strategy and sourcing decisions. We are managing exposure through diversified supplier bases and contract structures that balance cost certainty with operational flexibility.”
   [Food, Beverage & Tobacco Products] 

• “Conditions are optimistic but not yet booming for our company, even though many others, it seems, are experiencing growth. Machinery in support of defense and semiconductor manufacturing is very strong, a bright spot for our team. Industrial and medical clients are slow to purchase, focusing more on refurbished and upgraded units versus new ones.” [Machinery] 

• “Core business remains solid in the face of ongoing geopolitical uncertainty. Cautiously optimistic that a deal will be reached to reopen the Strait of Hormuz; concerned about ongoing ripple effects even when the strait reopens but situation is highly concerning if the strait remains closed. AI industry continues to have huge capacity consumption for critical electronics. Monitoring impact of U.S. defense industry needs on supplier capacity.”
   [Miscellaneous Manufacturing] 

• “No major changes from last month. With the potential ending of the Iran invasion, management is expecting us to go back to February pricing structures and plans since the increase in oil prices was driven by the war and not regular market influences.”
   [Petroleum & Coal Products] 

• “Requests from suppliers in Europe and India for ‘energy surcharges’ have stopped this past month. We’re seeing continued capacity growth in the Asia-Pacific region (excluding China), including Vietnam, Thailand and South Korea. Most suppliers are building for the longer term as geopolitical protection from all sides.”
   [Transportation Equipment] 

• “The new Section 232 tariffs continue to destroy our profitability and demand as we have to raise prices to deal with this gigantic tax. Add the ‘incentives’ for our company to pivot to purchasing non-U.S. sourced material, and one realizes the total ineptitude of this tariff policy.”
   [Transportation Equipment]
  

==========

CHART: ISM Manufacturing Index

JUNE 2026 Update

=========

DATA: ISM Manufacturing Index

12-Month History
JUNE 2026 Update

=========

=========

• Click here to view the complete ISM report

=========

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