US, Canada Manufacturing Weakness Persists in July
US, Canada Manufacturing Weakness Persists in July

US, Canada Manufacturing Weakness Persists in July

News summary

Manufacturing activity in the United States and Canada remained in contraction in July 2025, with the U.S. ISM Manufacturing PMI dropping to 48 and Canada's S&P Global manufacturing PMI rising slightly to 46.1, its sixth straight month of contraction. In Canada, persistent trade tensions and U.S. tariffs continued to suppress demand and sales, resulting in further cuts to jobs and purchasing activity despite a modest uptick in sales in June. U.S. manufacturing also saw notable declines in employment and improved supplier delivery times, while production and new orders improved but stayed below growth thresholds. Both countries' manufacturers are responding by running leaner operations amid ongoing trade policy shifts and global economic uncertainty. Price pressures eased in the U.S., as indicated by a falling Prices Paid Index, but business sentiment remains subdued. The continued manufacturing sector weakness signals broader economic headwinds for North America's goods-producing industries.

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