Charts: U.S. Manufacturing Trends Q3 2025

U.S. manufacturing activity showed modest improvement in June 2025, according to data released by the Institute for Supply Management (PDF).

The Institute’s Manufacturing Purchasing Managers Index (PMI) derives from monthly survey responses collected from purchasing and supply executives at more than 400 industrial firms. The overall PMI is a weighted composite of five seasonally adjusted indicators: new orders (30%), production (25%), employment (20%), supplier deliveries (15%), and inventories (10%).

The June PMI rose to 49.0, up from 48.5 in May, surpassing forecasts.

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Since 1968 the U.S. Federal Reserve Bank in Philadelphia has conducted a monthly survey targeting approximately 250 manufacturers in its district of Delaware, southern New Jersey, and eastern and central Pennsylvania. Respondents report on the business conditions and various aspects of activity at their facilities, such as employment, work hours, new and backlogged orders, shipments, inventory levels, and delivery times.

The July 2025 survey, conducted from the 7th to the 14th, solicited executives’ expectations for changes in operational and labor costs for the current year. Most anticipate rising costs in all expense categories throughout 2025.

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The National Association of Manufacturers (NAM) is the largest such organization in the United States, representing small and large manufacturers in every sector and in all 50 states.

Trade uncertainties and rising costs are the leading concerns for manufacturers, according to NAM’s Q1 2025 “Manufacturers’ Outlook Survey” (PDF) of approximately 250 firms, released in March.

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Moreover, manufacturers are increasingly focusing on digital transformation. NAM introduced a question in March to measure the importance manufacturers are giving to digitally transforming their operations. Over one-third of respondents (36.8%) plan to moderately prioritize digital transformation in the coming year.