US manufacturing hits 4-year high as exports rebound in July
US factory indicators strengthened in July, with demand, production and hiring improving in signals relevant to manufacturers, importers, exporters and sourcing teams tracking US industrial capacity.
For textile and apparel supply-chain participants, the key signals include the return of export-order growth, rising factory payrolls and increased capital-goods imports linked to retooling and expansion of factory capacity.
US manufacturing activity surged in July at the strongest rate in more than four years, with the ISM PMI expanding for a seventh straight month.
New export orders returned to expansion, while production, payrolls and wages rose, signalling stronger demand for US-made goods.
Capital goods imports exceeded 40 per cent of US goods imports as factories retooled and expanded.
US manufacturing activity surged in July at the strongest rate in more than four years, driven by strong demand, record production and new hiring, the White House said in press release.
The White House noted that the Institute for Supply Management (ISM) Manufacturing PMI showed the sector expanding for the seventh consecutive month. It described this as a reversal after contraction in every month of the previous Administration, outside a temporary post-pandemic bounce. New export orders also moved back into expansion.
Citing Federal Reserve indicators, the White House said manufacturing activity, payrolls and wages were rising nationwide. Manufacturing wages climbed 4.2 per cent year-on-year (YoY), outpacing inflation. Philadelphia Fed survey showed general activity and new orders at nearly five-year highs, added the release.
It mentioned President Trump’s Working Families Tax Cuts had supported six million American jobs, protected $540 billion in worker wages and preserved $1.1 trillion in US economic activity.
The White House also listed several related indicators: the US economy is projected to grow at a 6.2 per cent annualised rate in the third quarter of 2026; non-residential fixed investment rose 11.7 per cent last quarter, the fastest since 2023; orders for business equipment are on track for an all-time high in 2026; and capital goods imports now exceed 40 per cent of all US goods imports, which it called a historic peak as factories retool and expand.
The release further added that 83,000 factory construction jobs had been added since President Trump took office, and more than 18,000 manufacturing jobs had been created in 2026 alone, reversing years of decline. For sourcing and manufacturing teams, the published indicators frame July as a month of stronger US production momentum, expanding export orders and higher investment in factory capacity.
Fibre2Fashion News Desk
