US Manufacturing Growth Strongest Since 2022

The S&P Global US Manufacturing PMI was at 53.9 for a third consecutive month in August of 2026, revised higher from the flash estimate of 53.2, and aligned with the initial market expectations. Both output and new order growth eased in the period. Surveyees noted higher cost levels, with input inflation remaining well above the historical levels due to tariff uncertainties and the war in the Middle East, forcing companies to raise their charges. These developments drove firms to cite muted client appetite, resulting in the slowdown for new business. Still, higher production environments had manufacturers raise their purchasing activity for the eighth month running. Looking ahead, companies remained optimistic about their business, underpinning another period of employment growth.

The S&P Global US Manufacturing PMI eased to 53.2 in August 2026 from 53.9 prevously, undershooting market expectations of 53.9, flash estimates showed. The latest reading pointed to a moderation in manufacturing activity, with growth at its weakest since March, held back by higher fuel costs, reduced inventory building and raw material shortages linked to supply delays. Output growth slowed for a third consecutive month, reaching its weakest pace since July last year. New orders held up better but also lost momentum, expanding at their slowest rate since March. Input purchases fell for the first time since February, weighing on the PMI, while supply times lengthened sharply again, Employment rose modestly at the fastest pace since May. Price pressures moderated, especially in terms of selling price inflation, although nput cost inflation remained elevated by historical standards.due to high energy prices, squeezed supply lines, and tariffs. Lastly, business sentiment improved.

The S&P Global US Manufacturing PMI was revised slightly higher to 53.9 in July 2026 from the preliminary estimate of 53.8, matching June's reading and signaling another month of solid expansion in factory activity. Operating conditions have now improved for 12 consecutive months, although momentum softened. Output growth eased to its weakest pace since March, while new orders increased at a slower rate for the third straight month. Export orders continued to decline amid tariff pressures and subdued overseas demand. Supply chain disruptions remained severe, with supplier delivery times deteriorating at one of the fastest rates in four years, contributing to material shortages. Input cost inflation, driven by higher energy prices and tariffs, eased to a four-month low but remained elevated, prompting manufacturers to continue raising selling prices. Business confidence stayed positive but slipped to its weakest level since October 2025.