US Manufacturing in July 2026: Modest Growth but Could be Improved

New orders for manufacturing increased, which is a good sign. Shipments are also increasing, although these are not large increases. Unfilled orders increased a little bit, and inventories increased a little bit as well. So, overall, the manufacturing sector is still expanding, but it is expanding modestly.

The economy is still growing. It is not growing as quickly as we might like under ideal conditions, but there is still positive activity. We should also think about how we can enhance manufacturing by bringing together small and medium-sized businesses and anchoring them with perhaps a few large businesses to encourage broader economic activity.

While this report does not necessarily directly cover that, many times it is the small and large businesses that experience growth. Having a strong base of micro-manufacturers, small manufacturers, and custom manufacturers can, in some cases, help create larger companies down the road. So, while we are seeing moderate growth in manufacturing, there may be opportunities to improve and expand that growth.

U.S. Manufacturing Activity: July 2026

• New orders for manufactured goods increased 0.9% in July to $663.6 billion, following a 0.2% decline in June. This suggests a modest rebound in manufacturing demand.

• Manufacturers’ shipments increased 0.8% to $658.8 billion, marking the ninth increase in the past ten months and indicating relatively consistent manufacturing activity.

• Unfilled orders increased 0.6% to $1.60 trillion and have risen in 24 of the past 25 months, providing manufacturers with a substantial backlog of future production commitments.

• Manufacturing inventories increased 0.4% to $966.9 billion, extending the inventory growth streak to ten consecutive months. The inventories-to-shipments ratio remained at 1.47.

• Overall, the July data point to a manufacturing sector that is expanding modestly, with rising orders, shipments, inventories, and a large backlog. The combination suggests continued production activity, although the slightly lower unfilled-orders-to-shipments ratio indicates some improvement in manufacturers’ ability to work through their backlog.

U.S. Census Bureau. (2026, September 2). Monthly full report on manufacturers’ shipments, inventories, & orders. U.S. Department of Commerce. https://www.census.gov/manufacturing/m3/current/index.html