The latest ISM Manufacturing PMI for February 2026 just landed at 52.4 — surpassing forecasts of 51.8 (and only a slight dip from January's 52.6).
Key takeaway: A reading above 50 signals expansion in the US manufacturing sector — marking the second straight month of growth after a long stretch of contraction. This points to the broader economy continuing its expansion phase (now in its 16th month).
Highlights from the report:
New Orders at 55.8% (still expanding, though moderated)
Production at 53.5%
Prices Paid surged to 70.5% — the highest since June 2022 (inflation pressures building from tariffs, steel/aluminum costs, etc.)
Employment and inventories remain in contraction but showed slight improvement
Four of the six largest industries (including Chemical Products, Machinery, Transportation Equipment, and Computer & Electronic Products) expanded