U.S. manufacturing expands at fastest pace in over 4 years amid foreign investment surge
WASHINGTON — U.S. manufacturing activity expanded in July at its strongest pace in more than four years, marking a seventh consecutive month of growth, as foreign companies announced billions of dollars in new American investments that are expected to create thousands of jobs, according to data cited by the White House.
The Institute for Supply Management’s Manufacturing Purchasing Managers’ Index showed the sector expanding in July, according to the White House, which said the figure reversed a pattern of contraction during the previous administration outside a brief post-pandemic period. New export orders also returned to expansion territory, the White House said in a statement.
“U.S. manufacturing is booming, expanding at the fastest pace since 2022 and beating expectations in many metrics for the month of July,” Bloomberg’s Lisa Abramowicz posted on X. An economist cited in the same report noted that the ISM production index rose by the most for any July since 1951.
US manufacturing is booming, expanding at the fastest pace since 2022 and beating expectations in many metrics for the month of July. Omar Sharif of Inflation Insights points out that the ISM production index rose by the most for any July since 1951. https://t.co/SiVnhJghQA pic.twitter.com/I1tbaOyiJi
— Lisa Abramowicz (@lisaabramowicz1) August 3, 2026
Manufacturing wages rose 4.2% year over year, outpacing inflation, the White House said. The Federal Reserve Bank of Philadelphia’s latest survey showed general activity and new orders near five-year highs.
The White House credited President Donald Trump’s Working Families Tax Cuts and America First trade policies for the turnaround. The administration said the tax cuts have supported 6 million American jobs, protected $540 billion in worker wages and preserved $1.1 trillion in U.S. economic activity.
Factory construction has added 83,000 jobs since Trump took office, and more than 18,000 manufacturing jobs have been created in 2026 alone, reversing earlier declines, according to the White House.
Broader economic indicators also pointed upward. The Atlanta Fed’s GDPNow model projected 6.2% annualized growth in the third quarter. Nonresidential fixed investment rose 11.7% in the prior quarter, the fastest pace since 2023. Orders for business equipment were on track for an all-time high in 2026, and capital goods imports exceeded 40% of all U.S. goods imports, a record share as factories expand and retool, the White House said.
Foreign investment announcements this year underscore the trend. The White House highlighted several recent investment announcements, including Switzerland-based Octapharma, which said this week it will invest $1.5 billion to build its first U.S. production facility in South Carolina, creating 1,500 jobs.
Other recent commitments include:
- Novartis: $23 billion across 10 U.S. manufacturing and research facilities, creating 4,000 jobs.
- Roche: $50 billion in U.S. manufacturing and R&D, creating more than 12,000 jobs.
- UCB: $2 billion for its first U.S. biologics plant in Georgia, creating more than 800 jobs.
- Toyota: $3.6 billion to expand truck production in San Antonio, creating 2,000 jobs.
- TSMC: $265 billion in U.S. semiconductor manufacturing, expected to create tens of thousands of jobs.
- Wistron, in partnership with NVIDIA: $700 million for AI-related manufacturing in Texas, creating up to 1,000 jobs.
- Siemens: $165 million to expand U.S. manufacturing, creating more than 350 jobs.
- Zerluma: $50 million for an aluminum recycling plant, creating 70 jobs.
The White House said the administration will continue policies aimed at reshoring manufacturing, strengthening domestic supply chains and prioritizing American workers.
