Weekly intelligence for Supply-Chain, Procurement & CEO desk
LEADERSHIP NUGGET
U.S. manufacturers reported slower purchasing activity in December as business growth cooled to a six-month low, with firms citing tariffs as a factor pushing up input prices and increasing cost uncertainty for goods procurement (Reuters, 2025).
TRADING ECONOMICS. (2025, December 17). United States Composite PMI
The S&P Global US Flash Composite PMI fell to 53 in December 2025, the lowest in six months, compared to 54.2 in November. The data pointed to a slowdown in private sector activity, with both services (52.9 vs. 54.1) and manufacturing (51.8 vs. 52.2) easing to six-month and five-month lows, respectively. New business inflows booked the smallest rise in 20 months, with demand for services growing only modestly, and new orders for goods falling for the first time in a year. There was also a slight pull-back in business confidence for the year ahead, which contributed to a softening of employment growth to only a marginal level. Price pressures meanwhile intensified noticeably, with average selling prices rising at one of the steepest rates since mid-2022. Firms reported passing on the sharpest rise in costs for just over three years, in turn widely blamed on tariffs. source: S&P Global
EXEC SNAPSHOT - What changed this week
U.S. business activity growth slowed to its weakest pace in six months, with the S&P Global composite PMI at 53.0 (down from 54.2 in November) (Reuters, 2025).
Survey data showed new orders for goods weakened, while services remained resilient (Reuters, 2025).
Companies explicitly cited tariffs as contributing to higher prices, adding pressure on purchasing decisions (Reuters, 2025).
Manufacturers reported increased caution in procurement amid elevated cost uncertainty (Reuters, 2025).
DEEP DIVE
Reuters reports that December survey data from S&P Global shows U.S. manufacturers facing a slowdown in goods-related activity. New orders weakened, and firms highlighted tariffs as one of the drivers behind rising prices, with the input price index at its highest in 32 months (Reuters, 2025).
For procurement teams, this signals a measurable shift in the operating environment. While demand has not collapsed, purchasing decisions are being made more cautiously as firms navigate higher and less predictable input costs. The data indicates that procurement functions are operating under tighter cost controls and increased uncertainty around pricing, with services showing resilience (PMI 55.9) versus manufacturing's slowdown (Reuters, 2025). This may prompt inventory adjustments in Q4 and revised budgeting for 2026 to account for ongoing tariff impacts.
Procurement implications
Input prices are rising, with tariffs cited as a contributing factor (Reuters, 2025).
Goods purchasing momentum has weakened, indicating more cautious buying behavior (Reuters, 2025).
Cost predictability has declined, complicating procurement planning and budgeting (Reuters, 2025).
Inventory buffering strategies may need adjustment to mitigate tariff-driven price spikes (Reuters, 2025).
KPI DASHBOARD - Procurement signals to watch
Indicator | Signal reported | Procurement relevance |
|---|---|---|
Composite PMI | 53.0 (down from 54.2) (Reuters, 2025) | Indicates cooling purchasing momentum |
Manufacturing PMI | 51.8 (down from 52.2) (Reuters, 2025) | Suggests reduced or delayed buying |
Input prices | Rising (highest in 32 months) (Reuters, 2025) | Tariff-related cost pressure |
Supplier pricing feedback | Tariffs cited (Reuters, 2025) | Higher volatility in negotiations |
Euro Area Manufacturing PMI | 49.2 (down from 49.6) (Trading Economics, 2025) | Signals weakening demand in key export markets |
LEADERSHIP QUESTIONS
Which categories are most exposed to the tariff-related price increases cited by suppliers?
Are procurement forecasts reflecting the reported slowdown in goods orders?
How resilient are current budgets to continued input price pressure?
What adjustments are needed in supplier negotiations to address cost uncertainty?
ProcWee™ 3-Minute Diagnostic - Cost-pressure readiness
(Assess how confidently your team manages these topics)
Team capability | Fully confident | Not sure | No time / No resources |
|---|---|---|---|
Visibility into tariff-driven cost components | ☐ | ☐ | ☐ |
Updated goods demand forecasts | ☐ | ☐ | ☐ |
Scenario planning for input price volatility | ☐ | ☐ | ☐ |
Alignment with finance on cost assumptions | ☐ | ☐ | ☐ |
ONE-LINE VERDICT
Tariff-related price pressure is already visible in weaker goods orders, forcing procurement teams to operate with heightened cost uncertainty.
Sources
Reuters. (2025, December 16). U.S. business activity growth hits six-month low in December. Retrieved from https://www.reuters.com/business/us-business-activity-growth-hits-6-month-low-december-2025-12-16/
S&P Global. (2025, December 16). S&P Global Flash US PMI. Retrieved from https://www.pmi.spglobal.com/Public/Home/PressRelease/7c38539749e84275b30a6c77cf2bc463
TRADING ECONOMICS. (2025, December 17). United States Composite PMI. Retrieved from https://tradingeconomics.com/united-states/composite-pmi#:~:text=US%20Private%20Sector%20Slows%20Again,turn%20widely%20blamed%20on%20tariffs.