Manufacturing Purchasing Managers Index Rose to 55.6% in July

Tempe, AZ, August 3, 2026—The Manufacturing PMI registered 55.6% in July, 2.3 percentage points above the June figure and the highest reading since May 2022 (55.9%), say the nation’s supply executives in the latest ISM Manufacturing PMI Report. The overall economy continued in expansion for the 21st month in a row. 

(A Manufacturing PMI above 47.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index expanded for the seventh consecutive month after four straight readings in contraction, registering 56.7%, up 0.7 percentage point compared to June’s figure of 56%. 

The July reading of the Production Index (58.5%) is 6.3 percentage points higher than the 52.2% recorded in June and the highest figure since November 2021 (60.5%). 

The Prices Index remained in expansion (or ‘increasing’ territory), registering 71.1%, a 1.9-percentage point decrease from June’s reading of 73%. 

The Backlog of Orders Index registered 55%, up 4.5 percentage points compared to the 50.5% recorded in June. 

The Employment Index reading of 52.8% is up 3.1 percentage points from June’s figure of 49.7%, putting the index in expansion territory for the first time in 33 months.

The Supplier Deliveries Index indicated slowing performance for the eighth month in a row after one month in ‘faster’ territory. The reading of 58.9% is up 1.5 percentage points from its June reading of 57.4%. (Supplier Deliveries is the only ISM PMI Reports index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

The Inventories Index registered 51.2%, down 0.2 percentage point compared to June’s reading of 51.4%. 

The Customers’ Inventories Index reading of 40.7% is 1.6 percentage points lower compared to the 42.3% recorded in June.

The New Export Orders Index returned to expansion territory with a reading of 53%, 4.5 percentage points higher than the 48.5% registered in June. 

The Imports Index registered 55.7%, 2.8 percentage points higher than June’s reading of 52.9%.

The 15 manufacturing industries reporting growth in July—listed in order—are printing & related support activities; apparel, leather & allied products; electrical equipment, appliances & components; primary metals; nonmetallic mineral products; transportation equipment; miscellaneous manufacturing; textile mills; machinery; computer & electronic products; food, beverage & tobacco products; wood products; plastics & rubber products; furniture & related products; and fabricated metal products. The only industry in contraction was chemical products.