Manufacturing activity jumps to more than four-year high in July

U.S. manufacturing activity rose to its highest level in more than four years in July, according to the Institute for Supply Management, driven by stronger orders and boosting factory employment. The manufacturing PMI climbed to 55.6 from 53.3 in June, topping economists’ forecast of 54.0 and staying above the 50 threshold that signals expansion. New orders jumped to 56.7, with export demand rising and “unfinished work” building, prompting employment to rebound to 52.8, the highest since August 2022. Despite the upbeat picture, supply chain strain from the Middle East conflict kept input costs elevated; supplier deliveries slowed as the index rose to 58.9. ISM also reported factory-gate inflation stayed high, though prices paid eased to 71.1 from 73.0. The Fed held its overnight rate at 3.50%-3.75%.