re: The Quiet Manufacturing Boom. Trump’s policies are working, but legacy media won’t show it

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Specifically, that ISM reading stands at 55 now, well above the 50 mark, which signals expansion. It has been rising for seven months.

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The ISM said 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 this year has held above the 50 threshold, which indicates growth in the manufacturing sector.

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 war. An artificial intelligence buildout is also driving activity in the technology sector, blunting the ?hit on manufacturing from import tariffs.

With business inventories at very low levels, there is ample room for manufacturing to expand. The Fed reported last month that factory production grew at its fastest pace in four years in the second quarter.

Business inventories have ?declined for five straight quarters, the government reported last week.

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The ISM survey's new orders measure rose to 56.7 last month from 56.0 in June. Export orders surged and unfinished work piled up, prompting factories to boost employment. A ?measure of manufacturing employment rebounded to 52.8, the highest level ?since August 2022, from 49.7 in June. Sixty ?percent of respondents reported their firms were hiring, while 40% indicated they continued to manage headcounts, the ISM said.

Strong demand is, however, running into supply constraints.

The survey's supplier deliveries index increased to 58.9 from 57.4 in June. A reading above 50 indicates slower deliveries. The lengthening in suppliers' delivery times likely contributed to the jump in the PMI last ?month, as it is normally associated with a strong economy and high demand.

Supply constraints meant inflation at the factory gate remained elevated last month, though the pace ?of increase slowed. The survey's gauge ?of prices paid for inputs slipped to a still-high 71.1 from 73.0 in June.

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