The U.S. manufacturing sector contracted in April for the second month in a row, according to the latest manufacturing survey of supply executives from the Institute for Supply Management (ISM).

The two-month contraction had interrupted a rare expansion for the sector, which had grown during the first two months of 2025. But before that, U.S. manufacturing had contracted for 26 consecutive months.

Manufacturing is one of the linchpins of President Donald Trump’s plan to expand the U.S. economy. The commercial real estate sector is also a major consumer of warehouse and industrial properties. Trump has promised to grow the sector and bring manufacturing jobs back to the U.S. and is using tariffs to help do that.

That plan, however, is getting a slow start. The ISM report, which is a compilation of data from purchasing and supply executives in a variety of manufacturing sectors nationwide, found that manufacturing activity had slowed slightly in April, falling to an index measurement of 48.7%, down 0.3% from March’s score of 49%. A reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 indicates contraction.

The survey showed that new orders, backlogs, production and employment all contracted in April. While prices increased, exports and impacts fell.

Timothy R. Fiore, ISM chair, said the index tracking new orders contracted for the third straight month and the index tracking production fell 4.3% month over month in April.

“In April, U.S. manufacturing activity slipped marginally further into contraction after expanding only marginally in February,” Fiore said. “Demand and output weakened while input strengthened further, conditions that are not considered positive for economic growth.”