Manufacturing PMI expands for seventh month, hits 55.6% in July as factories roar back

American factories are having a moment. The ISM Manufacturing PMI climbed to 55.6 in July 2026, marking seven straight months of expansion and the strongest reading in over four years. For context, anything above 50 signals growth. The June reading of 53.3 already looked solid. July blew past it, topping economist forecasts and signaling that the manufacturing recovery isn’t just holding, it’s gaining speed. The numbers behind the streak The production output index surged to 58.5, its fastest pace since November 2021. New orders came in at 56.7, suggesting the pipeline of future work remains healthy. The employment index hit 52.8, crossing back into expansion territory for the first time since January 2025. That’s 18 months of workforce contraction finally reversing. On the cost side, the prices index actually eased. Softer input prices alongside rising output is about as good as the macro picture gets. Supplier deliveries slowed for the eighth consecutive month, which typically signals strong demand straining supply chains rather than logistical breakdowns. The separate S&P Global US Manufacturing PMI held steady near 53.8 to 53.9 in July, confirming ongoing expansion across m...