NEW YORK, Jan 6, 2026 (BSS/AFP) - US manufacturing activity contracted for a 10th straight month in December, a survey indicated Monday, pointing to a continued drag in sentiment from tariffs and trade policy uncertainty.

The Institute for Supply Management's (ISM) manufacturing index fell to 47.9 from November's 48.2 reading, the lowest of 2025 despite modest improvements in employment and some other categories.

The reading for the production category fell from November's level, while employment remained in contraction even as it saw a 0.9 percentage point improvement from November.

Respondents also described customers' inventories as "too low," which is usually a positive sign for future production, said ISM survey chair Susan Spence.

"But several consecutive months of gains in these indicators are necessary for a longer-term recovery," Spence added in a statement.

ISM's press release also contained a series of mostly downcast comments from participants throughout manufacturing. Overall, just two industries reported growth while 15 saw contraction.

"Things are quieter regarding tariffs, but prices for all products remain higher," said a computer and electronic products company.

"Our costs have increased, so we have increased prices for our customers to compensate. Margins have deteriorated, as full pass through (of cost increases) is not possible," the firm added.

A transportation company told the ISM "things are not improving," pointing to low truck rental utilization.

"The general mood of the industry is that the first half of 2026 will be another bust, and we're now hoping things pick up in the second half, even as the North American truck fleet continues to age," the transport company added.