October US ISM manufacturing index 48.7 vs 49.5 expected

• Prior was 49.1
• Prices paid 58.0 vs 61.5 expected (prior 61.9)
• Employment 46.0 vs 45.3 prior
• New orders 49.4 vs 48.9 prior
• Imports 45.4 vs 44.7 prior
• Production 48.2 vs 51.0 prior

US stock markets opened higher but the S&P 500 fell to flat shortly before this report. There was also some pre-report selling in USD/JPY that continued afterwards but it’s been limited to about 15 pips.

Comments in the report:

• “Business continues to remain difficult, as customers are cancelling
  and reducing orders due to uncertainty in the global economic
  environment and regarding the ever-changing tariff landscape.” (Chemical
  Products)
• “Decrease in domestic demand for finished products has resulted in
  slower manufacturing and an increase of raw material in inventory.”
  (Petroleum & Coal Products)
• “In general, business is really strained. Money is sitting tighter,
  and geopolitical changes add to the uncertainty/risk factor. Even
  medical fields are feeling the pressure.” (Miscellaneous Manufacturing)
• “Sales continue to underperform in our automotive OEM and industrial
  divisions. Our aerospace and automotive aftermarket are the only areas
  performing slightly above budget. This is the third month of
  lower-than-expected sales, and the remainder of the year outlook is not
  looking better. Sales are expected to be slightly less than in 2024.”
  (Fabricated Metal Products)
• “Tariffs continue to be a large impact to our business. The products
  we import are not readily manufactured in the U.S., so attempts to
  reshore have been unsuccessful. Overall, prices on all products have
  gone up, some significantly. We are trying to keep up with the wild
  fluctuations and pass along what costs we can to our customers.”
  (Machinery)
• “The commercial vehicle (CV) market remains depressed as customers
  continue to delay vehicle purchases. Uncertainty in price and
  transportation demand remains the center of attention. U.S. trade policy
  and reciprocal actions by China in the form of export controls on rare
  earths and semiconductors, as well as ocean freight carrier
  restrictions, have once again caused a lot of stress in supply lines.
  The CV industry is now bracing for the next round of tariffs focused on
  commercials vehicles, scheduled to begin on November 1.” (Transportation
  Equipment)
• “The tariff trade war has negatively impacted agricultural export
  markets, driving down demand and price. This negatively impacts farmer
  revenue and the likelihood of farmers investing in new equipment.”
  (Machinery)
• “The unpredictability of the tariff situation continues to cause
  havoc and uncertainty on future pricing/cost. But even with the tariffs,
  the cost to import in many cases is still more attractive than sourcing
  within the U.S. Challenges with tariffs on production equipment
  necessary for internal production makes it difficult to justify
  expansion of capacity.” (Computer & Electronic Products)
• “Volatility in some of our highly exposed commodity markets has
  tempered a bit, thanks to improved weather conditions and overall
  downward pressure on pricing. Tariffs continue to remain difficult to
  quantify, manage and deal with in general, since they continue to impact
  us day-to-day and our bottom line.” (Food, Beverage & Tobacco
  Products)
• “Wonder has turned to concern regarding how the tariff threats are
  affecting our business. Orders are down across most divisions, and we’ve
  lowered our financial expectations for 2025.” (Chemical Products)

This article was written by Adam Button at investinglive.com.