US Manufacturing Growth Steady in April

The ISM Manufacturing PMI for the US remained unchanged at 52.7 in April 2026, matching its highest level since August 2022 but falling short of market expectations for a rise to 53.0. New orders grew at a faster pace (54.1 vs. 53.5 in March), and supplier deliveries lengthened further (60.6 vs. 58.9), while production expanded at a slower rate (53.4 vs. 55.1), and employment levels declined at the sharpest pace in four months (46.4 vs. 48.7). Prices surged at the fastest rate since April 2022, driven by rising oil and diesel costs linked to the Middle East conflict. According to Susan Spence, Chair of the ISM Manufacturing Business Survey Committee, sentiment among panelists remained mixed in the second month of the Iran War. While 31% of comments were positive, 69% were negative, a ratio of 1 to 2.2. The war was mentioned in 47% of responses, with tariffs referenced in 18%. Some panelists addressed both issues in a single comment, often with conflicting sentiment.

The ISM Manufacturing PMI for the US increased to 52.7 in March 2026 from 52.4 in February and above forecasts of 52.5. The reading pointed to the strongest growth in factory activity since August 2022, led by a faster increase in production (55.1 vs 53.5) while new orders slowed (53.5 vs 55.8) and employment contracted slightly faster (48.7 vs 48.8). Also, the prices index jumped to 78.3, the highest since June 2022, from 70.5. “The Supplier Deliveries Index indicated a further slowing for the fourth month in a row (58.9 vs 55.1). March "also marks the first report with panelists citing the Iran war as a new impact to their business, along with ongoing uncertainty with U.S. economic policy, despite the recent Supreme Court ruling striking down International Emergency Economic Powers Act (IEEPA) tariffs. In March, 64% of comments overall were negative. Among the negative comments, about 20% cited tariffs and about 40% the war in the Middle East", Susan Spence, Chair of the ISM said.

The ISM Manufacturing PMI slipped to 52.4 in February 2026 from 52.6 in January, but remained above market expectations of 51.8. The reading signaled a second consecutive month of expansion in the manufacturing sector, albeit at a slightly slower pace. A smaller increase was recorded for new orders (55.8 vs 57.1) and production (53.5 vs 55.9) while employment (48.8 vs 48.1) and inventories (48.8 vs 47.6) remained in contraction. At the same time, price pressures intensified, with the subindex hitting the highest since June 2022 (70.5 vs 59), driven by increases in steel and aluminum as well as tariffs applied to many imported goods. Supplier deliveries (55.1 vs 54.4) indicated a further slowing for the third month in a row. "Of the six largest manufacturing industries, four (Chemical Products; Machinery; Transportation Equipment; and Computer & Electronic Products) expanded in February", Susan Spence, Chair of the ISM Manufacturing Business Survey Committee said.