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.



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Survey Shows U.S. Manufacturing Expansion at Slower Pace


Reports related to this article:

Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Economic activity in U.S. manufacturing expanded for the sixth straight month, according to the ISM’s latest PMI survey, but at a slightly slower pace than in May.

U.S. Manufacturing Activity Rolls On

The Institute of Supply Management’s (ISM) Purchasing Managers Index showed economic activity in U.S. manufacturing expanded for the sixth straight month in June, but at a slightly slower pace month-over-month. Respondents to the accompanying survey continue to express concern around the Iran war and U.S. trade policy, although price pressures lessened.

The PMI, which tracks 18 manufacturing sectors in the U.S., registered 53.3% in June, down from 54% in May–indicating slightly slower growth month-over-month. But that figure still is up from 52.7% in both April and March. Any reading over 50% indicates expansion in the manufacturing economy.

According to Industrial Info Resources data, there is $655 billion worth of projects under construction in the U.S. Industrial Manufacturing Industry; more than half of the investment is attributed to data centers and semiconductors. The Global Market Intelligence (GMI) Project Database offers a full list of projects.

Any reading under 50% indicates contraction in the manufacturing economy.

Although “the ongoing war and price volatility” remain a worry, “the badness is better than last month,” Susan Spence, chair of ISM’s Manufacturing Business Survey Committee, said during a news media call on July 1.

Two of the four demand indicators–the New Orders and Backlog of Orders indexes–expanded in June, albeit at a slightly slower pace than in May. In terms of output, production also grew at a slower rate month-over-month, but the survey showed Supplier Deliveries (delivery times) are slowing–which is considered positive for future production.

In addition, the Employment and Inventories indexes improved, with the latter entering expansion territory.

Iran War’s Effect on Sentiment



“In June, 34% of the comments were positive and 66% negative, with a 1-to-1.9 ratio of positive to negative sentiment,” she said in the report summary of findings. “Among negative comments, the Iran war was mentioned in 31% and tariffs in 17%; 50% of the panelists mentioned pricing volatility as an issue for their companies.”

That is an improvement from May’s ratio of 1-to-2.7.

Although June’s Prices Index, an indicator of input and raw materials costs, continues to show elevated price pressures, the reading of 73% improved from May’s 82.1%.

The elevated index continues to be driven by increases in steel and aluminum prices impacting the entire value chain; tariffs applied to many imported goods; and increases in petroleum-based products as a result of the recent Middle East conflict.

“Prices are going in a really wonderful direction,” Spence said on the media call. Speaking to the survey comments, “it is all about pricing,” and she was “erring on the caution’s side” in forecasting the business environment for the second half of the year. But she also noted that “optimism is there and it’s creeping in.”

“The conflict in Iran has impacted pricing in every category of raw materials,” one respondent from Chemical Products said. “Especially, items that have a heavy concentration of oil in the components like our adhesives.”

Price instability is forcing a “more conservative approach to capital expenditures,” another respondent in the Computer & Electronic Products sector said.

The ISM considers semiconductors and data-center components to be part of the sector.

Data Center Construction, Semiconductors Drive Strong Manufacturing Capex



South Korea-based semiconductor company SK Hynix is building out its U.S. production capacity via a roughly $4 billion grassroot plant in West Lafayette, Indiana. The 430,000-square-foot packaging fabrication plant and research and development hub will support high bandwidth memory (HBM) chips used for artificial intelligence. Production is expected to begin in 2028.

High-dollar data center projects include the estimated $650 million construction of Building 11 at Google’s Moncks Corner Data Center in South Carolina. The 275,000-square-foot addition is designed to help support services such as Google Cloud and Gmail. The project is expected to wrap up next year.

Readers can view the two project reports.

Key Takeaways

  • The ISM’s PMI survey shows U.S. manufacturing activity expanded for the sixth straight month in June but at a slightly slower pace compared with May.
  • The Iran war is driving ongoing price pressures for manufacturers, although they indicated that is easing.
  • Data centers and semiconductors buoy U.S. manufacturing-related construction underway, according to Industrial Info Resources data.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR’s Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).

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U.S. Manufacturing Expands at Fastest Pace Since July 2021 Amid War-Related Supply Concerns – News and Statistics


Jun 25, 2026

U.S. manufacturing expanded in June at its fastest pace since July 2021, according to S&P Global. The firm reported on Tuesday that war-related supply concerns drove new orders to a four-year high.

In contrast, the service sector experienced sluggish growth in output and new orders, with S&P Global attributing this to resistance against rising prices and low consumer confidence. Excluding the pandemic period, factory job cuts reached their highest level since 2009.

S&P Global Market Intelligence Chief Business Economist Chris Williamson commented that the further decline in employment in manufacturing was most worrying, driven by concerns over rising raw material costs and the durability of demand. He noted that factory growth continues to be temporarily supported by inventory building due to supply fears.

Overall U.S. business activity rose in June for the third consecutive month, S&P Global said, with its composite index increasing to 52.2—a five-month high—from 51.5 in May. However, the rate of growth remained below the level seen before the start of the war with Iran on February 28.

The June survey indicated an ongoing split in the economy, with sluggish service sector growth contrasting with a solid manufacturing expansion. Service providers frequently cited elevated prices, higher interest rates, and low confidence among business and consumer customers. The service sector fuels more than 75% of U.S. economic growth.

Amid signs of weakness, several economists have reduced their growth estimates for this year. The National Association for Business Economics (NABE) reported on Monday that a panel of its economists trimmed their median forecast for gross domestic product growth this year to 2% from 2.4% in March. The economists echoed the S&P Global survey findings, noting the harm to the outlook from persistent war.

KPMG Senior Economist Yelena Maleyev, chair of the NABE survey, stated that geopolitical conflict remains the top downside concern. She added that for the first time in over a year, an end to the wars in Ukraine and the Middle East outranked productivity gains as the leading upside risk.

According to Williamson, jagged progress toward resolution of the Iran war has lifted spirits among manufacturers and service providers. He said that brighter news out of the Middle East helped restore some confidence among U.S. businesses in June. Still, he indicated that current output levels are consistent with the economy struggling to grow much faster than a 1% annualized rate in the second quarter.

  1. 1. INTRODUCTION

    Making Data-Driven Decisions to Grow Your Business

    1. REPORT DESCRIPTION
    2. RESEARCH METHODOLOGY AND THE AI PLATFORM
    3. DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
    4. GLOSSARY AND SPECIFIC TERMS
  2. 2. EXECUTIVE SUMMARY

    A Quick Overview of Market Performance

    1. KEY FINDINGS
    2. MARKET TRENDS This Chapter is Available Only for the Professional EditionPRO
  3. 3. MARKET OVERVIEW

    Understanding the Current State of The Market and its Prospects

    1. MARKET SIZE: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
    2. CONSUMPTION BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
    3. MARKET FORECAST TO 2035
  4. 4. MOST PROMISING PRODUCTS FOR DIVERSIFICATION

    Finding New Products to Diversify Your Business

    1. TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
    2. BEST-SELLING PRODUCTS
    3. MOST CONSUMED PRODUCTS
    4. MOST TRADED PRODUCTS
    5. MOST PROFITABLE PRODUCTS FOR EXPORT
  5. 5. MOST PROMISING SUPPLYING COUNTRIES

    Choosing the Best Countries to Establish Your Sustainable Supply Chain

    1. TOP COUNTRIES TO SOURCE YOUR PRODUCT
    2. TOP PRODUCING COUNTRIES
    3. TOP EXPORTING COUNTRIES
    4. LOW-COST EXPORTING COUNTRIES
  6. 6. MOST PROMISING OVERSEAS MARKETS

    Choosing the Best Countries to Boost Your Export

    1. TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
    2. TOP CONSUMING MARKETS
    3. UNSATURATED MARKETS
    4. TOP IMPORTING MARKETS
    5. MOST PROFITABLE MARKETS
  7. 7. PRODUCTION

    The Latest Trends and Insights into The Industry

    1. PRODUCTION VOLUME AND VALUE: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
    2. PRODUCTION BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
  8. 8. IMPORTS

    The Largest Import Supplying Countries

    1. IMPORTS: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
    2. IMPORTS BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
    3. IMPORT PRICES BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
  9. 9. EXPORTS

    The Largest Destinations for Exports

    1. EXPORTS: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
    2. EXPORTS BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
    3. EXPORT PRICES BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
  10. 10. PROFILES OF MAJOR PRODUCERS

    The Largest Producers on The Market and Their Profiles

  11. 11. COUNTRY PROFILES

    The Largest Markets And Their Profiles

    This Chapter is Available Only for the Professional Edition
    PRO

    1. 11.1

      United States

      • Market Size
      • Production
      • Imports
      • Exports
    2. 11.2

      China

      • Market Size
      • Production
      • Imports
      • Exports
    3. 11.3

      Japan

      • Market Size
      • Production
      • Imports
      • Exports
    4. 11.4

      Germany

      • Market Size
      • Production
      • Imports
      • Exports
    5. 11.5

      United Kingdom

      • Market Size
      • Production
      • Imports
      • Exports
    6. 11.6

      France

      • Market Size
      • Production
      • Imports
      • Exports
    7. 11.7

      Brazil

      • Market Size
      • Production
      • Imports
      • Exports
    8. 11.8

      Italy

      • Market Size
      • Production
      • Imports
      • Exports
    9. 11.9

      Russian Federation

      • Market Size
      • Production
      • Imports
      • Exports
    10. 11.10

      India

      • Market Size
      • Production
      • Imports
      • Exports
    11. 11.11

      Canada

      • Market Size
      • Production
      • Imports
      • Exports
    12. 11.12

      Australia

      • Market Size
      • Production
      • Imports
      • Exports
    13. 11.13

      Republic of Korea

      • Market Size
      • Production
      • Imports
      • Exports
    14. 11.14

      Spain

      • Market Size
      • Production
      • Imports
      • Exports
    15. 11.15

      Mexico

      • Market Size
      • Production
      • Imports
      • Exports
    16. 11.16

      Indonesia

      • Market Size
      • Production
      • Imports
      • Exports
    17. 11.17

      Netherlands

      • Market Size
      • Production
      • Imports
      • Exports
    18. 11.18

      Turkey

      • Market Size
      • Production
      • Imports
      • Exports
    19. 11.19

      Saudi Arabia

      • Market Size
      • Production
      • Imports
      • Exports
    20. 11.20

      Switzerland

      • Market Size
      • Production
      • Imports
      • Exports
    21. 11.21

      Sweden

      • Market Size
      • Production
      • Imports
      • Exports
    22. 11.22

      Nigeria

      • Market Size
      • Production
      • Imports
      • Exports
    23. 11.23

      Poland

      • Market Size
      • Production
      • Imports
      • Exports
    24. 11.24

      Belgium

      • Market Size
      • Production
      • Imports
      • Exports
    25. 11.25

      Argentina

      • Market Size
      • Production
      • Imports
      • Exports
    26. 11.26

      Norway

      • Market Size
      • Production
      • Imports
      • Exports
    27. 11.27

      Austria

      • Market Size
      • Production
      • Imports
      • Exports
    28. 11.28

      Thailand

      • Market Size
      • Production
      • Imports
      • Exports
    29. 11.29

      United Arab Emirates

      • Market Size
      • Production
      • Imports
      • Exports
    30. 11.30

      Colombia

      • Market Size
      • Production
      • Imports
      • Exports
    31. 11.31

      Denmark

      • Market Size
      • Production
      • Imports
      • Exports
    32. 11.32

      South Africa

      • Market Size
      • Production
      • Imports
      • Exports
    33. 11.33

      Malaysia

      • Market Size
      • Production
      • Imports
      • Exports
    34. 11.34

      Israel

      • Market Size
      • Production
      • Imports
      • Exports
    35. 11.35

      Singapore

      • Market Size
      • Production
      • Imports
      • Exports
    36. 11.36

      Egypt

      • Market Size
      • Production
      • Imports
      • Exports
    37. 11.37

      Philippines

      • Market Size
      • Production
      • Imports
      • Exports
    38. 11.38

      Finland

      • Market Size
      • Production
      • Imports
      • Exports
    39. 11.39

      Chile

      • Market Size
      • Production
      • Imports
      • Exports
    40. 11.40

      Ireland

      • Market Size
      • Production
      • Imports
      • Exports
    41. 11.41

      Pakistan

      • Market Size
      • Production
      • Imports
      • Exports
    42. 11.42

      Greece

      • Market Size
      • Production
      • Imports
      • Exports
    43. 11.43

      Portugal

      • Market Size
      • Production
      • Imports
      • Exports
    44. 11.44

      Kazakhstan

      • Market Size
      • Production
      • Imports
      • Exports
    45. 11.45

      Algeria

      • Market Size
      • Production
      • Imports
      • Exports
    46. 11.46

      Czech Republic

      • Market Size
      • Production
      • Imports
      • Exports
    47. 11.47

      Qatar

      • Market Size
      • Production
      • Imports
      • Exports
    48. 11.48

      Peru

      • Market Size
      • Production
      • Imports
      • Exports
    49. 11.49

      Romania

      • Market Size
      • Production
      • Imports
      • Exports
    50. 11.50

      Vietnam

      • Market Size
      • Production
      • Imports
      • Exports
  12. LIST OF TABLES

    1. Key Findings In 2025
    2. Market Volume, In Physical Terms: Historical Data (2012–2025) and Forecast (2026–2035)
    3. Market Value: Historical Data (2012–2025) and Forecast (2026–2035)
    4. Per Capita Consumption, by Country, 2022–2025
    5. Production, In Physical Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    6. Imports, In Physical Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    7. Imports, In Value Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    8. Import Prices, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    9. Exports, In Physical Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    10. Exports, In Value Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    11. Export Prices, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
  13. LIST OF FIGURES

    1. Market Volume, In Physical Terms: Historical Data (2012–2025) and Forecast (2026–2035)
    2. Market Value: Historical Data (2012–2025) and Forecast (2026–2035)
    3. Consumption, by Country, 2025
    4. Market Volume Forecast to 2035
    5. Market Value Forecast to 2035
    6. Market Size and Growth, By Product
    7. Average Per Capita Consumption, By Product
    8. Exports and Growth, By Product
    9. Export Prices and Growth, By Product
    10. Production Volume and Growth
    11. Exports and Growth
    12. Export Prices and Growth
    13. Market Size and Growth
    14. Per Capita Consumption
    15. Imports and Growth
    16. Import Prices
    17. Production, In Physical Terms: Historical Data (2012–2025) and Forecast (2026–2035)
    18. Production, In Value Terms: Historical Data (2012–2025) and Forecast (2026–2035)
    19. Production, by Country, 2025
    20. Production, In Physical Terms, by Country: Historical Data (2012–2025) and Forecast (2026–2035)
    21. Imports, In Physical Terms: Historical Data (2012–2025) and Forecast (2026–2035)
    22. Imports, In Value Terms: Historical Data (2012–2025) and Forecast (2026–2035)
    23. Imports, In Physical Terms, By Country, 2025
    24. Imports, In Physical Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    25. Imports, In Value Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    26. Import Prices, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    27. Exports, In Physical Terms: Historical Data (2012–2025) and Forecast (2026–2035)
    28. Exports, In Value Terms: Historical Data (2012–2025) and Forecast (2026–2035)
    29. Exports, In Physical Terms, By Country, 2025
    30. Exports, In Physical Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    31. Exports, In Value Terms, By Country: Historical Data (2012–2025) and Forecast (2026–2035)
    32. Export Prices, By Country: Historical Data (2012–2025) and Forecast (2026–2035)

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