ISM Manufacturing PMI — July 2026
Headline: The Manufacturing PMI rose 2.3 points to 55.6 in July, indicating expansion for the seventh consecutive month. The reading was a 6-month high, above the prior six-month average of 52.9 and the 52.4–54.0 range. Manufacturing remained above its 50.0 breakeven, while the broader economy was also growing relative to its 47.5 breakeven.
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 crossed into expansion, rising from 49.7 to 52.8 and reaching a six-month high.
- New Export Orders moved from contracting to growing, rising 4.5 points to 53.0, also a six-month high; Imports likewise reached a six-month high at 55.7.
Insights:
- The demand pipeline strengthened: New Orders at 56.7 remained above its six-month average, while Backlog of Orders rose to 55.0, above its average of 52.8. This combination supports continued production momentum.
- The modest rise in manufacturers’ Inventories to 51.2 appears more consistent with deliberate stocking than involuntary accumulation, given growing New Orders, stronger backlogs and a sharp production increase.
- Customers’ Inventories at 40.7 remain “too low” for the 22nd consecutive month. As an inverse indicator, this is supportive of future orders as customers replenish lean stocks.
- Supplier Deliveries at 58.9 indicate slower deliveries, generally consistent with strong demand and/or supply-chain tightness. The reading is above its six-month average, reinforcing the strength of the operating environment.
- Input-cost pressure remains material: Prices at 71.1 signals rising costs despite easing from 73.0 and sitting below its six-month average of 74.6. Margin pressure and goods-inflation risks therefore remain, though they moderated at the margin.
Breadth & prices: All 15 industries reported growth, with zero industries contracting. Input prices continued to increase, reflected in the elevated Prices index of 71.1.
Takeaway: July’s print points to a broad-based acceleration in the manufacturing cycle, with headline PMI, Production, Employment, exports and imports at six-month highs. Strong orders, rising backlogs and lean customer inventories support the near-term outlook, while slower supplier deliveries and elevated input costs temper the otherwise constructive signal.