US manufacturing activity jumps to more than four-year high in July
SPY•Manufacturing PMI rises to 55.6 in July
WASHINGTON, Aug. 3 (Reuters) - U.S. manufacturing activity increased to the highest level in more than four years in July amid strong order growth, boosting factory employment, though the Middle East conflict is straining supply chains and keeping input costs elevated.
The Institute for Supply Management said on Monday its manufacturing PMI increased to 55.6 last month, the highest reading since May 2022, from 53.3 in June. Economists polled by Reuters had forecast the PMI would edge up to 54.0.
The PMI has this year held above the 50 threshold, which indicates growth in the manufacturing sector.
New orders and factory employment strengthen
Manufacturing, which accounts for about 9.4% of the economy, has been supported by businesses front-loading orders to avoid higher prices and shortages stemming from the Iran. An artificial intelligence buildout is also driving activity in the technology sector, blunting the hit on manufacturing from import tariffs.
