The latest S&P Global U.S. Manufacturing PMI for July 2026 indicates that the manufacturing sector continues to expand, extending a growth trend that has now lasted approximately a year+. While the report reflects continued resilience, it also points to signs that the pace of expansion is beginning to moderate. General trends are up but some risks are growing and on the surface it looks like leveling. Keep in mind you are looking for trends because short term adjustments can be limited without lots of other data.
Among the areas of concern is weakening export activity. Strong exports remain essential to long-term economic growth, particularly when they consist of high-value, finished products that generate greater economic returns. Imports, by comparison, are often most beneficial when they provide access to raw materials and resources that support domestic production.
Strengthening U.S. manufacturing will require continued investment across businesses of all sizes—from small startups to medium-sized manufacturers and large industrial firms. Each segment plays a unique role in the innovation cycle and should be supported with performance measures that recognize its contribution to economic development.
A healthy manufacturing economy is also characterized by continual renewal. As some companies mature, restructure, or exit the market, new firms should emerge to replace them with innovative products, technologies, and business models. Likewise, when companies choose to relocate manufacturing overseas in pursuit of lower production costs, new domestic manufacturers should be encouraged to fill those gaps and strengthen the nation's industrial base.
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| Source: Trading Economics A good source of info. |
*There are no perfect perjections and new data changes perceptions and the actors.
S&P Global US Manufacturing PMI - July 2026Headline Purchasing Managers' Index recorded 53.9 in July 2026, matching June's reading and marking one year of continuous expansion.
Output growth slowed to a four-month low, while new order expansion eased for the third consecutive month due to weak consumer confidence and high prices.
Export demand fell further as foreign sales were weighed down by international tariffs and sluggish overseas demand.
Supply chain issues worsened severely, leading to near four-year highs in vendor delivery delays due to ongoing conflict in the Middle East.
Input costs and output prices grew at a slower rate, though inflation remained elevated due to high energy prices and tariffs.
Employment growth was minimal as vacancy filling slowed, while backlogs increased slightly due to raw material shortages.
Business confidence dropped to its lowest level since October 2025 over concerns about persistent inflation, supply chain bottlenecks, and slowing sales.
S&P Global. (2026, August 3). S&P Global US Manufacturing PMI: US manufacturing sector expansion holds steady but masks softer production and sales growth (News Release). S&P Global Market Intelligence.








