- 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
Widespread tariff uncertainty
Multiple sectors (Accommodation & Food Services, Information, Real Estate, Wholesale Trade) cite tariffs as disruptive, increasing complexity, raising costs, or slowing business.
Suppliers vary widely in tariff-related pricing, creating planning uncertainty.
General economic uncertainty and mixed conditions
Firms report unclear demand outlooks, mixed indicators, and hesitation among customers (Real Estate, Accommodation & Food Services, Management Services).
Concerns about another potential federal shutdown contribute to caution.
Margin pressures across industries
Higher input prices (tariffs, wages, cost of goods) plus limited pricing power are squeezing margins (Construction, Wholesale, Hospitality).
Some industries expect margin erosion as competition intensifies.
Demand softening or slowing in several sectors
Construction, Information, and some consumer-facing sectors note slower volumes, affordability issues, or intentional pauses.
Wholesale expects demand to stay steady but affordability remains a “generation-wide” challenge.
End-of-year seasonality effects
Finance, Utilities, and some parts of Construction report year-end project pushes or ramp-downs.
Demand patterns appear consistent with typical late-year cycles.
Improving or stable supply chains
Healthcare notes better supply chain performance, with higher fill rates and fewer backorders.
Indicates continued normalization versus post-pandemic conditions.
Labor conditions generally stabilizing
Healthcare reports strong staffing stability and less need for travel labor.
Construction and other industries note labor tightening or margin pressure but not acute shortages.
Housing and affordability remain major constraints
High mortgage rates continue to suppress residential home sales.
Affordability challenges persist across an entire generation of buyers (Wholesale, Construction).
Optimism pockets, despite challenges
Healthcare expresses an optimistic forecast.
Retail trade reports strong business and stable pricing.
Some sectors see consistent demand heading into 2026.
