- Manufacturing PMI® registered 55.6% in July 2026, marking the highest level since May 2022.
- US manufacturing activity reached a more than four-year high, driven by strong order growth and boosting factory employment.
- Input prices remained elevated, with the Prices Index reading at 71.1, despite a slight decrease from June's 73.0.
- Manufacturing accounts for about 9.4% of the economy and has been supported by businesses front-loading orders to avoid higher prices and shortages.
- Fifteen manufacturing industries reported growth last month, with only the chemical products industry showing contraction.
- Supply constraints have kept inflation at the factory gate elevated, although the pace of increase has slowed.
U.S. manufacturing activity reached 55.6% in July, marking the highest level since May 2022, driven by robust order growth and a rebound in factory employment.4
The ISM's manufacturing PMI rose from 53.3 in June, indicating sustained growth above the 50 threshold.
Manufacturing employment rebounded to 52.8, the highest since August 2022, with 60% of firms hiring.
However, supply chain issues, exacerbated by the Middle East conflict, kept input prices high, with the Prices Index at 71.1, down from 73.0 in June.3
Despite these challenges, 15 manufacturing industries reported growth, while only the chemical products sector contracted.
The New Orders Index expanded for the seventh consecutive month, reaching 56.7%, and the Production Index surged to 58.5%, the highest since November 2021.
Comments from the ISM survey reflected a mix of optimism and concern, with 62% negative sentiments primarily focused on pricing volatility and geopolitical risks.
Manufacturing, which constitutes about 9.4% of the economy, has been buoyed by businesses front-loading orders to mitigate higher prices and shortages.
Overall, the manufacturing sector expanded for the seventh straight month, signaling resilience amid ongoing challenges.
“Factory employment rebounded to 52.8, the highest since August 2022, with 60% of firms hiring. Prices paid slipped to 71.1 from 73.0, but 57% of negative comments cited pricing volatility and 43% the Iran war, as new orders hit 56.7.”
PR Newswire
