ISM Manufacturing PMI — July 2026
Headline: The Manufacturing PMI rose to 55.6 from 53.3 (+2.3), indicating manufacturing expansion at a faster rate for the seventh consecutive month. The reading was a 6-month high, well above the prior six-month average of 52.9 and above the 52.4–54.0 range. At 55.6, the index is above both the manufacturing breakeven of 50.0 and the broader-economy breakeven of 47.5, consistent with expansion in manufacturing and the overall economy.
Sub-indices:
| Index | Level | Prior | Change | Direction | vs 6-mo |
|---|---|---|---|---|---|
| New Orders | 56.7 | 56.0 | +0.7 | Growing | above avg (55.6) |
| Production | 58.5 | 52.2 | +6.3 | Growing | 6-mo high |
| Employment | 52.8 | 49.7 | +3.1 | Growing | 6-mo high |
| Supplier Deliveries | 58.9 | 57.4 | +1.5 | Slowing | above avg (57.8) |
| Inventories | 51.2 | 51.4 | -0.2 | Growing | above avg (49.0) |
| Customers' Inventories | 40.7 | 42.3 | -1.6 | Too Low | above avg (40.3) |
| Prices | 71.1 | 73.0 | -1.9 | Increasing | below avg (74.6) |
| Backlog of Orders | 55.0 | 50.5 | +4.5 | Growing | above avg (52.8) |
| New Export Orders | 53.0 | 48.5 | +4.5 | Growing | 6-mo high |
| Imports | 55.7 | 52.9 | +2.8 | Growing | 6-mo high |
Key moves:
- Production surged 6.3 points to 58.5, a six-month high and well above its prior six-month range of 52.2–55.9.
- Employment rose 3.1 points to 52.8, its six-month high, crossing above 50 from 49.7 in June.
- New Export Orders and Imports both reached six-month highs; export orders rose above 50 from 48.5, while Backlog of Orders increased to 55.0, above its six-month average.
Insights:
- The demand backdrop strengthened: New Orders at 56.7, Backlog at 55.0, and customers’ inventories at 40.7 (“too low”) point to a favorable reorder pipeline and support for future production.
- The modest 51.2 reading for manufacturers’ inventories, alongside rising orders and backlogs, looks more consistent with measured, demand-supported stocking than an involuntary buildup.
- Supplier Deliveries at 58.9 indicate slower deliveries, consistent with stronger demand and/or supply tightness rather than slack. The combination of six-month highs in Production, Employment and Imports suggests the expansion is broadening.
- Input-cost pressure remains material: Prices at 71.1 still signal rising costs, although the index is below its six-month average of 74.6 and has eased for a second month.
Breadth & prices: All 15 reported industries indicated growth, while zero reported contraction. Input prices continued to increase, with the Prices Index at 71.1, albeit at a slower rate than in June.
Takeaway: July’s report signals a firmer manufacturing cycle, with demand, production, labor and external activity all improving and the headline PMI reaching a six-month high. Low customer inventories and expanding backlogs support continued near-term output, while elevated input prices and slower supplier deliveries remain constraints.