- Prior month 52.4
- ISM non- Manufacturing PMI 52.6 vs 52.1 estimate
- Business activity 54.5 vs 54.3 last month.
- Employment 48.9 vs 48.2 last month. Best since May.
- New orders 52.9 vs 56.2 last month. Weakest the since September
- Prices Paid 65.4 vs 70.0 last month.
Other components:
- Backlog of orders 49.1 versus 40.8 last month.
- New export orders 48.7 versus 47.8 last month.
- Imports 48.9 versus 43.7 last month.
- Inventory sentiment 54.8 versus 55.0 last month.
Key Commonalities Across Respondent Comments
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Widespread tariff uncertainty
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Multiple sectors (Accommodation & Food Services, Information, Real Estate, Wholesale Trade) cite tariffs as disruptive, increasing complexity, raising costs, or slowing business.
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Suppliers vary widely in tariff-related pricing, creating planning uncertainty.
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General economic uncertainty and mixed conditions
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Firms report unclear demand outlooks, mixed indicators, and hesitation among customers (Real Estate, Accommodation & Food Services, Management Services).
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Concerns about another potential federal shutdown contribute to caution.
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Margin pressures across industries
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Higher input prices (tariffs, wages, cost of goods) plus limited pricing power are squeezing margins (Construction, Wholesale, Hospitality).
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Some industries expect margin erosion as competition intensifies.
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Demand softening or slowing in several sectors
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Construction, Information, and some consumer-facing sectors note slower volumes, affordability issues, or intentional pauses.
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Wholesale expects demand to stay steady but affordability remains a “generation-wide” challenge.
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End-of-year seasonality effects
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Finance, Utilities, and some parts of Construction report year-end project pushes or ramp-downs.
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Demand patterns appear consistent with typical late-year cycles.
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Improving or stable supply chains
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Healthcare notes better supply chain performance, with higher fill rates and fewer backorders.
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Indicates continued normalization versus post-pandemic conditions.
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Labor conditions generally stabilizing
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Healthcare reports strong staffing stability and less need for travel labor.
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Construction and other industries note labor tightening or margin pressure but not acute shortages.
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Housing and affordability remain major constraints
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High mortgage rates continue to suppress residential home sales.
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Affordability challenges persist across an entire generation of buyers (Wholesale, Construction).
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Optimism pockets, despite challenges
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Healthcare expresses an optimistic forecast.
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Retail trade reports strong business and stable pricing.
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Some sectors see consistent demand heading into 2026.
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This article was written by Greg Michalowski at investinglive.com.