US manufacturing activity hits four-year high in July

The United States manufacturing sector has shown signs of expansion, with the Institute for Supply Management (ISM) Manufacturing Index reaching a four-year high in July 2026. The July PMI reading of 55.6 marked the seventh consecutive month of expansion in the sector.

Despite the rising index, there are conflicting interpretations regarding a broader manufacturing renaissance. While some reports highlight rising foreign investment and construction activity related to trade and factories, other analyses suggest that manufacturing capacity has remained largely flat since 2017 when excluding the semiconductor industry. Additionally, recent payroll data showed a modest addition of only 5,000 factory jobs, with a noted decline in overtime work.