HomeUS ISM Manufacturing PMI for July 55.6 versus 54.0 estimateUS ISM Manufacturing PMI for July 55.
6 versus 54.0 estimateNewsGreg Michalowski20 minutes agoUS ISM manufacturing PMI data for the month of July 2026Prior month 53.3 Prices paid 71.
1 versus 71.0 estimate.. Prior month 73.
0 Employment 52.8 versus 49.7 last month.
New orders 56.7 versus 56.0 last monthHere are the other components for July vs June: Production: 58.
5 vs 52.2 Supplier Deliveries: 58.9 vs 57.
4 Inventories: 51.2 vs 51.4 Customers' Inventories: 40.
7 vs 42.3 Backlog of Orders: 55.0 vs 50.
5 New Export Orders: 53.0 vs 48.5 Imports: 55.
7 vs 52.9Comments on the report from Susan Spence "In July, U.S.
manufacturing activity remained in expansion territory, growing at its fastest rate in more than four years. Of the five subindexes that make up the PMI®, four grew faster compared to the previous month; the exception was the Inventories Index, which was down just 0.2 percentage point.
"In July, 38 percent of the comments were positive and 62 percent negative, with a 1-to-1.6 ratio of positive to negative sentiment. Pricing volatility was mentioned in 57 percent of negative comments, the Iran war 43 percent, increasing lead times 22 percent and tariffs 18 percent.
"In July, three of four demand indicators (the New Orders, Backlog of Orders and New Export Orders indexes) were in expansion, and the Customers' Inventories Index remained in 'too low' territory, contracting at a faster rate. A 'too low' status for the Customers' Inventories Index is usually considered positive for future production."Regarding output, the Production Index expanded for the ninth month in a row, and the Employment Index increased 3.
1 percentage points to enter growth territory for the first time in 33 months. Sixty percent of panelists reported their companies are hiring, while 40 percent indicated that managing head counts remains the norm.Overall, this is a more expansionary ISM report, and stronger than expected.
The details show manufacturing momentum broadening rather than narrowing.The positives:Headline PMI jumped to 55.6 from 53.
3, the highest since May 2022, signaling a meaningful acceleration in factory activity. Four of the five PMI components improved, with only Inventories slipping slightly. Production surged to 58.
5 from 52.2, suggesting manufacturers are ramping up output. Employment moved back into expansion (52.
8 vs. 49.7), the first expansionary reading in nearly three years.
Backlog of Orders jumped to 55.0, indicating demand is beginning to outpace current production capacity. New Export Orders returned to expansion, showing some improvement in overseas demand.
Customers' Inventories remained very low (40.7), which is typically bullish because customers eventually need to replenish inventories. The caution flags:Prices remained very elevated at 71.
1. While down from 73.0, it still points to widespread input cost pressures.
Supplier Deliveries slowed further, reflecting continued supply chain bottlenecks rather than improved efficiency. ISM noted that respondents continue to cite pricing volatility, the renewed Iran conflict, tariffs, and longer lead times as key concerns. Bottom lineThis report is decisively expansionary.
Nearly every major demand and production measure improved, employment returned to growth, and manufacturing is expanding at its fastest pace in more than four years. The only real negative is that inflationary pressures remain elevated, meaning the report is likely to be viewed as growth-positive but potentially hawkish for Fed expectations, since stronger manufacturing activity is accompanied by stubbornly high prices. US stocks are reacting positively:Dow industrial average +1.
37%.S&P index +0.99%NASDAQ index +1.
24%NASDAQ 100+0.60%ADVERTISEMENT - CONTINUE READING BELOWText SizeTagsUSDAdd as a preferredsource on GoogleMost PopularUS Construction Spending for June -0.1% vs 0.
2% estimateUS ISM Manufacturing PMI for July 55.6 versus 54.0 estimateS&P Global Manufacturing PMI Final for July 53.
9 vs 53.8 preliminaryUS has made a concession to Iran on Hormuz but Iran won't open until the war is overThe USDCAD is higher on the day but remains below the 100 hour MAWH NEC Kevin Hassett: US inflation numbers have been fantasticThe USDJPY is continuing to run lower. The EURUSD and GBPUSD are little changed to kickstart the new dayinvestingLive European markets wrap: Oil holds lower despite Iran refuting Trump claimsIndian Rupee surges after massive dollar-selling intervention.
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