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News of the Day August 4, 2026
United States Manufacturing Activity Jumps to More Than Four-Year High in July
The Institute for Supply Management said on Monday its manufacturing PMI increased to 55.6 last month, the highest reading since May 2022, from 53.3 in June.
The PMI has this year held above the 50 threshold, which indicates growth in the manufacturing sector.
The ISM survey’s new orders measure rose to 56.7 last month from 56.0 in June. Export orders surged and unfinished work piled up, prompting factories to boost employment. A measure of manufacturing employment rebounded to 52.8, the highest level since August 2022, from 49.7 in June.
Strong demand is, however, running into supply constraints.
The survey’s supplier deliveries index increased to 58.9 from 57.4 in June. A reading above 50 indicates slower deliveries. The lengthening in suppliers’ delivery times likely contributed to the jump in the PMI last month, as it is normally associated with a strong economy and high demand.
Supply constraints meant inflation at the factory gate remained elevated last month, though the pace of increase slowed. The survey’s gauge of prices paid for inputs slipped to a still-high 71.1 from 73.0 in June.