US Manufacturing PMI Surges to 55.6 in July, Highest Since May 2022

The US manufacturing recovery accelerated sharply in July, with the ISM Manufacturing PMI rising 2.3 points to 55.6 – the highest reading since May 2022. This marks the seventh consecutive monthly expansion and extends a surge of 7.7 points since December 2025, the biggest such increase since the post‑pandemic recovery of 2020.

Underpinning the strength, the new orders sub-index inched up 0.7 points to 56.7, the third-highest level since February 2022, signaling further momentum ahead. The employment gauge staged a notable rebound, jumping 3.1 points to 52.8 – the first monthly expansion since January 2025 and the highest since August 2022.

On the inflation front, the prices paid component fell 1.9 points to 71.1, the lowest since February. This marks a third consecutive monthly decline, totaling 13.5 points, suggesting that cost pressures are gradually easing even as activity accelerates.