JAKARTA – Economic activity in the United States manufacturing sector continued to contract in May 2025, with imports plunging to their lowest level since the first quarter of 2009.

The Institute for Supply Management’s (ISM) manufacturing PMI, as quoted by YahooFinance (3/6), recorded a reading of 48.5 in May, down from 48.7 in April.

A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction. According to ISM data, US manufacturing PMI has remained in contraction for much of the past two years.

The import index for May fell to 39.9, significantly lower than April’s 47.1. This figure is close to the lowest level since April 2009, when it stood at 38.5.

“Imports continue to contract as declining demand has reduced the need to maintain previous levels of imports. This is also due to the impact of price increases resulting from tariffs,” explained Susan Spence, Chair of ISM’s Manufacturing Business Survey Committee, in a statement.

Spence added that the main concern among industry players is uncertainty surrounding tariffs, with 86% of survey respondents identifying tariffs as their top issue. Some even compared the current situation to the economic pressures seen during the 2020 Covid pandemic.

On the other hand, a separate report from S&P Global showed the manufacturing PMI at 52 in May, up from 50.2 in April.

However, Chris Williamson, Chief Business Economist at S&P Global, warned that the increase masks underlying issues in the US manufacturing sector.

“Although there was a rise in new orders and supplier activity, this jump was largely driven by producers’ concerns over potential supply chain disruptions and rising prices. Many firms have intentionally stockpiled large inventories as a precaution,” Williamson wrote in his report. (EF/ZH)