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July US ISM Manufacturing PMI Shows Impact of Tariff Hikes on Employment, Manufacturers Continue to Navigate Increased Costs
The United States’ manufacturing sector experienced a notable shift in July, as indicated by the latest Purchasing Managers’ Index (PMI) report released by the Institute for Supply Management (ISM). According to data published by the Japan External Trade Organization (JETRO) on August 5, 2025, at 04:10 JST, the US ISM Manufacturing PMI revealed that rising tariffs have exerted downward pressure on employment within the sector. Concurrently, manufacturers are diligently continuing their efforts to absorb and manage increased costs.
The ISM Manufacturing PMI, a closely watched barometer of the health of the US manufacturing economy, registered a certain level (specific figure not provided in the JETRO headline) in July. While the overall sentiment regarding business conditions in the manufacturing sector remains a key focus, the report’s findings highlight specific challenges that are impacting operational performance.
A significant takeaway from the report is the discernible negative effect of escalated tariffs on employment figures. The increased cost of imported raw materials and components, a direct consequence of tariff implementations, appears to be influencing companies’ hiring decisions. This suggests that businesses are recalibrating their workforce strategies in response to heightened operational expenses, potentially leading to a slowdown in job creation or even workforce reductions in some instances.
Furthermore, the report underscores the ongoing commitment of US manufacturers to navigate the persistent challenge of rising costs. These cost pressures are likely multifaceted, encompassing not only the impact of tariffs but also potential increases in labor, energy, and other input prices. The continuous efforts to digest and manage these escalating expenses point to a proactive approach by businesses to maintain profitability and competitiveness in a dynamic economic environment. Strategies may include process optimization, seeking alternative suppliers, or implementing price adjustments where feasible.
The JETRO publication of this analysis serves as valuable insight for businesses engaged in or considering trade with the United States, particularly those with manufacturing interests. Understanding these evolving dynamics is crucial for strategic planning and for anticipating potential impacts on supply chains and market access. The report indicates a manufacturing landscape where businesses are actively adapting to external economic pressures, demonstrating resilience and a commitment to operational efficiency.
7月の米ISM製造業景況感指数、関税引き上げが雇用を下押し、コスト増消化の取り組みは継続
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日本貿易振興機構 published ‘7月の米ISM製造業景況感指数、関税引き上げが雇用を下押し、コスト増消化の取り組みは継続’ at 2025-08-05 04:10. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.