US industrial activity accelerated sharply in July, reaching its strongest level in more than four years.
The Institute for Supply Management (ISM) reported that its manufacturing purchasing managers’ index (PMI) rose to 55.6, up from 53.3 in June.
The reading marks a significant expansion in factory output and new orders, defying earlier concerns about a mid-year slowdown in the manufacturing sector.
The data provides a robust foundation for the second half of the year, with the ISM describing the results as a "good start" to the period.
The jump in the index suggests that US manufacturers are ramping up production in response to resilient demand, potentially easing supply constraints that have weighed on the sector in recent quarters.
This positive momentum aligns with broader economic indicators pointing to continued growth despite higher interest rates.