By They said it couldn’t be done, but here we are: U.S. manufacturing activity expanded in July at its fastest pace in more than four years, beating expectations and extending a string of strong economic reports.
The Institute for Supply Management’s Manufacturing Purchasing Managers’ Index climbed to 55.6 in July, up from 53.3 in June. The reading marked the seventh consecutive month of expansion and the highest level since May 2022. Any reading above 50 indicates growth in the manufacturing sector.
American manufacturing is roaring back under the policies of President Trump.
The largest tax cut in American history—which every Democrat voted against, but President Trump and the Republican majorities delivered on—is driving this boom.
Promises made, promises kept. 🇺🇸 https://t.co/eImPShLtF6
— Rapid Response 47 (@RapidResponse47) August 3, 2026
The result also topped economists’ expectations, which had centered around 54.0.
“Economic activity in the manufacturing sector expanded in July for the seventh consecutive month,” the ISM said in its monthly report.
The broader U.S. economy has now expanded for 21 consecutive months, according to the organization.
Growth was widespread across the sector. The New Orders Index rose to 56.7, while the Production Index climbed to 58.5, its highest level since November 2021. The Employment Index returned to expansion territory at 52.8 after contracting the previous month, suggesting manufacturers added workers as demand strengthened.
CNBC described the report as “much better than expected,” calling the July reading “the best read in over four years, since May of ’22.”
The White House Rapid Response account highlighted the figures on Twitter, pointing to the report as evidence of continued strength in American manufacturing.
The latest data aligns with a broader push to expand domestic industrial capacity. In recent months, companies have announced new investments in advanced manufacturing, semiconductor production, defense, artificial intelligence infrastructure and energy projects as policymakers seek to strengthen America’s industrial base and reduce reliance on overseas supply chains.
CNBC: "On manufacturing — comes in much better than expected, 55.6%. That would be the best read in over four years, since May of '22." 🔥 https://t.co/KJujRqPchS pic.twitter.com/Ga6DhbPwpg
— Rapid Response 47 (@RapidResponse47) August 3, 2026
Energy is expected to play a central role in sustaining that growth. Rising demand from manufacturers, AI data centers and other energy-intensive industries has fueled renewed interest in expanding electricity generation, including natural gas and next-generation nuclear power.
The report was not without signs of continued inflationary pressure. The Prices Index registered 71.1, indicating manufacturers continued to pay higher input costs, though the pace of price increases slowed slightly from June. Supplier deliveries slowed further, while inventories and exports also expanded.
Some manufacturers also reported stronger demand as customers accelerated orders amid uncertainty over broader economic conditions and global supply chains.
Whether the momentum continues into the second half of the year will depend on whether strong new orders translate into sustained production and hiring while businesses navigate elevated costs and ongoing geopolitical uncertainty, but it looks like American manufacturing under the policies of Donald Trump has come back to life.
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