ISM Manufacturing PMI Increases to 55.6% Indicating Manufacturing Growth

This manufacturing report is one of the reasons why it is important to read a variety of publications and reports from different organizations. This report shows that manufacturing is expanding, while other recent reports have suggested that the sector may be weakening. The differences highlight the importance of looking at multiple data sources and understanding how each organization measures economic activity.

Overall, this is positive news because new orders are increasing and demand remains strong. As a country, we want to attract companies to invest and manufacture high-quality, advanced products in the United States. Any economic system has inputs and outputs, and the amount of value created and distributed throughout society is an important measure of its success (Over concentration weakens that success).

Over the past few decades, many companies moved production overseas to reduce costs, sometimes saving only a small amount per unit. However, rebuilding domestic manufacturing can create broader economic benefits through higher wages, increased tax revenue, stronger communities, and additional investment.

Hopefully, this trend will continue and lead to more hiring and expansion in manufacturing. However, it is important to remember that economic trends need to continue over time before they represent a lasting change. A single report provides a snapshot, but long-term patterns require consistent results across multiple periods and sources. It is also interesting to see how different reports evaluate the economy and use different metrics to measure performance.

U.S. Manufacturing Growth Strengthens in July 2026

• The ISM Manufacturing PMI increased to 55.6% in July 2026, showing the strongest manufacturing growth since 2022.
• New orders and production increased, showing stronger demand for manufactured goods.
• Manufacturing employment grew for the first time in nearly three years as companies added workers.
• Businesses continued to face higher costs, supply challenges, and uncertainty in global markets.
• Most manufacturing industries reported growth, showing broad improvement across the sector.

Institute for Supply Management. (2026, August 3). July 2026 ISM® Manufacturing PMI® report. https://www.ismworld.org/supply-management-news-and-reports/reports/ism-pmi-reports/pmi/july/