US Fifth District Manufacturing Edges Up in July

The Federal Reserve's Fifth District manufacturing index edged up to 5 in July 2026 from 4 in June, remaining well below market expectations of 9. Manufacturing activity was broadly stable during the month, as stronger shipments (8 vs. 4) and a rebound in employment (2 vs. -1) offset slower growth in new orders (5 vs. 8). Local business conditions improved sharply, with the index rising to 10 from -1. On the price front, cost pressures eased, as the growth rate of prices paid slowed to 6.08% from 6.99%, while prices received moderated to 3.96% from 4.57%. Looking ahead, firms expect inflationary pressures to moderate over the next 12 months. However, optimism softened, with expectations for local business conditions (19 vs. 22), shipments (33 vs. 36), and new orders (31 vs. 33) all declining, though remaining firmly in positive territory.

The Federal Reserve's Fifth District manufacturing index decreased by 9 points from the previous month to 4 point in June 2026, down from 13 in May and below market expectations. The result reflected an unchanged level of manufacturing activity in the district, with most key components weakening during the month. Shipments eased to 3 from 16, while new orders declined to 9 from 17, though both indicators remained positive. Meanwhile, raw materials inventories increased to 9 from 5. On the other hand, the employment index slipped into negative territory at -1, reversing from 3 in the previous month. Price pressures strengthened, with the average growth rates of prices paid rising to 6.99% from 5.96%, and prices received increasing to 4.57% from 4.21%. Looking ahead, shipments expectations improved to 38 from 35. However, expectations for new orders and employment softened, falling to 32 from 36 and to 16 from 23, respectively.

The Federal Reserve's Fifth District manufacturing index jumped by 10 points from the previous month to 13 in May of 2026, the highest since 2021, and well ahead of market expectations of 4. The result was aligned with broader signals of strength from manufacturing surveys in the US, despite the rise in energy prices and borrowing costs since March due to the war in the Middle East. The index measuring new orders surged (17 vs 8 in April), driving a rebound in shipments (16 vs -2). Meanwhile, prices paid rose at a slower magnitude (5.96 vs 6.4), driving firms to ease the increase on their charges (4.21 vs 4.73). Looking ahead, improvements are expected both for shipments (35 vs 21) and new orders (36 vs 26).