US Manufacturing PMI reaches 53-month high amid nearshoring trends

The US Manufacturing PMI rose to 56.0 in October 2026, marking its highest level since May 2022 and exceeding economist forecasts. This expansion is driven by significant job growth, with factory hiring reaching its fastest pace since March 2012. While input costs and composite selling prices have increased, stronger new orders and employment are supporting a robust sector recovery.

Parallel to this domestic growth, nearshoring to Mexico is providing strategic advantages for US manufacturers. By utilizing Mexican industrial hubs like Monterrey and Guadalajara, companies are achieving shorter supply chains, with goods reaching the US in 3–5 days via truck or rail compared to weeks from Asia. This shift, supported by the USMCA, offers cost competitiveness, reduced geopolitical risk, and improved supply chain resilience, particularly in the automotive, electronics, and medical device sectors.