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Utility Dive8 days ago

US manufacturing activity in December was the lowest in 2025: PMI

Key Takeaway

Weakening manufacturing activity, driven by soft demand, tariffs, and geopolitical instability, signals a challenging economic environment for industrial power consumers and power project developers.

AI Summary

  • US manufacturing activity in December 2025 reached its lowest point, indicating a significant economic slowdown.
  • Weak demand and existing tariff effects are creating headwinds for businesses, impacting industrial output and potentially electricity consumption.
  • Increased geopolitical uncertainty due to the U.S. military operation in Venezuela adds another layer of risk to the economic environment.
  • For large power consumers and developers, this signals a potential deceleration in industrial load growth and heightened economic instability, impacting future demand forecasts and PPA opportunities.

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