The most recent snapshot of U.S. factory activity showed continued growth, a reassuring sign for a sector that has faced uneven conditions over the past couple of years.
The Institute for Supply Management's Manufacturing PMI, a widely watched survey of purchasing managers at factories across the country, came in at 55.6% for July. Readings above 50% indicate the manufacturing sector is expanding rather than contracting, so a figure in the mid 50s points to solid, broad based growth in new orders, production, and related activity.
The ISM manufacturing index is one of the first major economic indicators released each month, and it is closely watched by investors and economists because it tends to offer an early read on the direction of the broader economy. Manufacturing makes up a smaller share of U.S. output than services, but factory conditions are often seen as a bellwether for business investment and global trade flows.
An updated reading for August is due out this week, and will offer the next signal on whether the expansion seen in July has continued into the late summer, particularly against the backdrop of shifting tariff policies affecting manufacturers' costs for imported materials.
The ISM's August manufacturing report is expected this week and will show whether the expansion held up through the summer.
What does a PMI reading above 50 mean?
It means more purchasing managers reported growth than contraction in areas like new orders and production, signaling the sector is expanding.
When is the next manufacturing report due?
The ISM's August 2026 Manufacturing PMI report is expected this week, following its usual schedule of releasing on the first business day of the month.