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Released September 05, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Economic activity in U.S. manufacturing improved marginally in August, according to a survey by the Institute for Supply Management (ISM), but still contracted for the sixth straight month, as survey respondents indicated U.S. tariffs and economic uncertainty continue to hinder business operations.
The ISM's Purchasing Manager's Index (PMI), which tracks 18 manufacturing sectors in the U.S., registered 48.7% in August, up slightly from 48% in July, and roughly flat compared with June, May and April. March, February and January each saw readings over 50%. Any reading under 50% indicates contraction in the manufacturing economy.
"In August, U.S. manufacturing activity contracted at a slightly slower rate, with new orders growth the biggest factor in the 0.7-percentage point gain of the Manufacturing PMI," Susan Spence, chair of the ISM Manufacturing Business Survey Committee, said in a related summary of findings. "However, since production contracted at a rate nearly equal to the expansion in new orders," the increase was nominal.
The New Orders Index indicated growth in August following a six-month period of contraction (51.4% up from 47.1% in July), and another indicator of demand, New Export Orders, also showed gains.
However, the Production Index for August returned to a contraction level and was 3.6% lower than July's figure.
And although the New Orders index moved back into expansion territory, "for every positive comment about new orders, there were 2.5 comments expressing concern about near-term demand, primarily driven by tariff costs and uncertainty," said Spence.
Another demand indicator, the Backlog of Orders Index, contracted at a slightly faster rate in August compared with July. Spence said ongoing contraction in the index "means that trade issues and other geopolitical tensions are still at play. Significant improvement shouldn't be expected until those issues begin to recede."
President Donald Trump's tariffs are now in flux, however, as a federal appeals court recently ruled against most of them--although they remain in place...for now. Trump has since appealed the ruling to the U.S. Supreme Court.
Survey respondents further expressed how tariffs were impacting their operations. One from Fabricated Metal Products said, "Export demand is falling as customers do not accept tariff impacts, which likely will require some production transfers out of the U.S. Tariff costs have biggest financial impact."
Another from Transportation Equipment had a stark warning: "The trucking industry continues to contract. Our backlog continues to shrink as customers continue to hold off on buying new equipment. This current environment is much worse than the Great Recession of 2008-09. There is absolutely no activity in the transportation equipment industry. This is 100 percent attributable to current tariff policy and the uncertainty it has created. We are also in stagflation: Prices are up due to material tariffs, but volume is way off."
Two other respondents touched on tariffs' effect on capital expenditures: one from Electrical Equipment, Appliances & Components said spending and hiring are frozen, while one from Nonmetallic Mineral Products said, "large expansions or investment are hampered by the unknown of costing and the economy."
Despite the negative sentiment, Industrial Info is tracking more than $400 billion in Industrial Manufacturing Industry projects under construction in the U.S. Amazon.com Incorporated (Seattle, Washington) leads all parent companies in terms of total investment value ($30.5 billion) and project count (79). Most of Amazon's activity is attributed to data center projects.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the full list of manufacturing projects and here for the full list of projects attributed to Amazon, including its Amazon Web Services cloud computing unit.
Among the data center projects are two new buildings in Virginia, a hub for data center investment, with a combined investment value of $800 million. Construction of building IAD-230 is expected to wrap up by the end of the year, and IAD-128 in the fourth quarter of 2026.
But Amazon also is building out distribution and warehousing space, including a $120 million distribution center in Terrell, Texas, about 30 miles east of Dallas. The 933,656-square-foot facility is expected to expand regional fulfillment/distribution center operations.
Subscribers can read more information on construction of IAD-230, IAD-128 and the distribution center project.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The ISM's Purchasing Manager's Index (PMI), which tracks 18 manufacturing sectors in the U.S., registered 48.7% in August, up slightly from 48% in July, and roughly flat compared with June, May and April. March, February and January each saw readings over 50%. Any reading under 50% indicates contraction in the manufacturing economy.
"In August, U.S. manufacturing activity contracted at a slightly slower rate, with new orders growth the biggest factor in the 0.7-percentage point gain of the Manufacturing PMI," Susan Spence, chair of the ISM Manufacturing Business Survey Committee, said in a related summary of findings. "However, since production contracted at a rate nearly equal to the expansion in new orders," the increase was nominal.
The New Orders Index indicated growth in August following a six-month period of contraction (51.4% up from 47.1% in July), and another indicator of demand, New Export Orders, also showed gains.
However, the Production Index for August returned to a contraction level and was 3.6% lower than July's figure.
And although the New Orders index moved back into expansion territory, "for every positive comment about new orders, there were 2.5 comments expressing concern about near-term demand, primarily driven by tariff costs and uncertainty," said Spence.
Another demand indicator, the Backlog of Orders Index, contracted at a slightly faster rate in August compared with July. Spence said ongoing contraction in the index "means that trade issues and other geopolitical tensions are still at play. Significant improvement shouldn't be expected until those issues begin to recede."
President Donald Trump's tariffs are now in flux, however, as a federal appeals court recently ruled against most of them--although they remain in place...for now. Trump has since appealed the ruling to the U.S. Supreme Court.
Survey respondents further expressed how tariffs were impacting their operations. One from Fabricated Metal Products said, "Export demand is falling as customers do not accept tariff impacts, which likely will require some production transfers out of the U.S. Tariff costs have biggest financial impact."
Another from Transportation Equipment had a stark warning: "The trucking industry continues to contract. Our backlog continues to shrink as customers continue to hold off on buying new equipment. This current environment is much worse than the Great Recession of 2008-09. There is absolutely no activity in the transportation equipment industry. This is 100 percent attributable to current tariff policy and the uncertainty it has created. We are also in stagflation: Prices are up due to material tariffs, but volume is way off."
Two other respondents touched on tariffs' effect on capital expenditures: one from Electrical Equipment, Appliances & Components said spending and hiring are frozen, while one from Nonmetallic Mineral Products said, "large expansions or investment are hampered by the unknown of costing and the economy."
Despite the negative sentiment, Industrial Info is tracking more than $400 billion in Industrial Manufacturing Industry projects under construction in the U.S. Amazon.com Incorporated (Seattle, Washington) leads all parent companies in terms of total investment value ($30.5 billion) and project count (79). Most of Amazon's activity is attributed to data center projects.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the full list of manufacturing projects and here for the full list of projects attributed to Amazon, including its Amazon Web Services cloud computing unit.
Among the data center projects are two new buildings in Virginia, a hub for data center investment, with a combined investment value of $800 million. Construction of building IAD-230 is expected to wrap up by the end of the year, and IAD-128 in the fourth quarter of 2026.
But Amazon also is building out distribution and warehousing space, including a $120 million distribution center in Terrell, Texas, about 30 miles east of Dallas. The 933,656-square-foot facility is expected to expand regional fulfillment/distribution center operations.
Subscribers can read more information on construction of IAD-230, IAD-128 and the distribution center project.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
