US manufacturing PMI rises to 55.6 in July, highest in more than four years

According to the latest report from the US Institute for Supply Management, the country's manufacturing purchasing managers' index rose from 53.3 to 55.6 in July 2026. The reading beat economists' forecast of 54 and was the highest level for the index since May 2022. A reading above the 50 mark indicates that factory activity expanded compared with the previous month, and US manufacturing has now spent seven consecutive months in expansion territory.

The main driver of the July report was the production index, which jumped 6.3 points from 52.2 to 58.5, its highest level since November 2021. The new orders index rose from 56 to 56.7 and backlogs of orders climbed from 50.5 to 55. The factory employment index rose from 49.7 to 52.8, entering expansion territory for the first time in 33 months. New export orders rose from 48.5 to 53 and the imports index climbed from 52.9 to 55.7.

In total, 15 of the 18 industries surveyed reported growth in activity. Alongside these figures, the supplier deliveries index rose from 57.4 to 58.9, a sign of slower supply chains, so not all of the jump can be attributed to healthy demand alone.