US manufacturing activity ticks up in July

3rd Aug 2026 15:04

(Sharecast News) - US manufacturing expanded again in July, with the Institute for Supply Management posting its strongest reading since 2022 and S&P Global also confirming solid growth, even as momentum softened across several key components.

The ISM PMI rose to 55.6 in July, up from 53.3 in June for its strongest reading since May 2022 - pointing to a twenty‑first straight month of expansion.

The survey showed broad improvement across key components, with new orders increasing for a seventh month to 56.7, production jumping to 58.5, its highest since late 2021, and employment moving back into growth territory at 52.8% for the first time in almost three years. Backlogs also strengthened, rising to 55%.

Supplier delivery times continued to lengthen, with the index at 58.9%, reflecting ongoing supply chain strain. Inventories were little changed at 51.2%, while customers' inventories fell further to 40.7%, a level typically seen as supportive for future output. Export orders returned to expansion at 53%, and imports rose to 55.7%.

Overall, four of the five main sub‑indexes strengthened, underscoring the fastest pace of manufacturing growth in more than four years.

On a separate note, S&P Global's US manufacturing purchasing managers index was revised up to 53.9 for July, slightly ahead of a preliminary reading of 53.8, matching June's level and marking a twelfth straight month of improving operating conditions.

Output growth eased to its weakest pace since March and new orders rose at a slower rate for the third month running, while export demand continued to fall amid tariff pressures and subdued overseas markets. Supply chain disruption remained severe, with delivery times deteriorating at one of the fastest rates in four years and contributing to material shortages.

Input cost inflation eased to a four‑month low but remained elevated due to higher energy prices and tariffs, prompting businesses to continue raising selling prices. Business confidence remained positive but slipped to its weakest reading since October 2025.

Reporting by Iain Gilbert at Sharecast.com