U.S. factory activity weakened further in July as the Institute for Supply Management’s manufacturing index fell to 48.0 from 49.0 a month earlier, undershooting economists’ 49.5 forecast and hitting its lowest level in nine months. Readings below 50 signal contraction, and July marked the fifth consecutive month in negative territory. The survey’s forward-looking components also remained soft: new orders improved slightly to 47.1 but still indicated shrinking demand, while the employment gauge dropped to 43.4, the weakest since 2020, pointing to accelerating job cuts. Prices paid eased to 64.8 yet stayed well above the 50 break-even line, suggesting cost pressures persist. Respondents told ISM that the 145 percent tariff on Chinese goods that came into force in April continues to inflate raw-material costs and cloud demand forecasts, prompting some firms to reduce headcount and defer investment. Although the production sub-index edged back above 50, a broad 79 percent of manufacturing GDP was still contracting, according to the survey. A separate poll from S&P Global offered little relief, with its final U.S. manufacturing PMI ticking up to 49.8 from a preliminary 49.5 but remaining in contraction for a sixth month. The global picture was similarly subdued: JPMorgan’s worldwide manufacturing PMI slipped to 49.7, the first time since January that the composite has fallen below the 50 threshold. Outside the United States, July purchasing-manager reports painted a mixed but generally weak picture. China’s official factory gauge slipped to 49.3, while the euro-area and the U.K. posted 49.8 and 48.0, respectively. Japan logged 48.9 and Canada 46.1, signaling deeper declines. India was a notable outlier, with activity expanding strongly at 59.1 amid robust new-order growth. On the consumer side, the University of Michigan’s final sentiment index inched up to 61.7 from 60.7 in June. One-year inflation expectations rose to 4.5 percent, but the five-to-ten-year outlook eased to 3.4 percent, the lowest since January. While households remain cautious, the modest improvement in confidence has yet to translate into stronger demand for manufactured goods.