US manufacturing activity hits 4-year high, manufacturing employment hits near 3-year high

U.S. manufacturing activity increased to its highest level in more than four years in July driven by strong order growth, according to data from the ​Institute for Supply Management. 

The Manufacturing Purchasing Managers' Index increased to 55.6 last month from 53.3 in June, which was the highest since May 2022. Economists polled by Reuters had projected PMI would grow to 54. 

Despite the strong growth data, responses to the ISM survey published on Monday were overwhelmingly negative. The war in Iran was mentioned often in the comments, as was price volatility. Some economists were confident the Federal Reserve would raise interest rates as soon as next month. 

Growth was seen in fifteen manufacturing industries, including electrical equipment, appliances and components, primary metals, transportation equipment, machinery as well as computer and electronic products. Activity in the technology sector was driven by the artificial intelligence buildout.