Key sectors of the economy that spent years squeezed by high interest rates are gaining momentum. Why it matters: For years, manufacturing and construction were among the clearest signs that the Federal Reserve's tightening campaign — reversed only somewhat at the end of last year — was weighing on the economy. - Now, manufacturing and construction are early sources of job growth, helped by an AI investment boom that has so far been unconstrained by still-high borrowing costs. What they're saying: "The private labor market has rebounded in 2026 due to a resurgence of the highly cyclical manufacturing sector ... while a robust buildout of data centers has propelled construction employment," Troy Ludtka, senior economist at SMBC, wrote…
The American manufacturing sector is growing at its fastest pace in four years.
The American manufacturing sector is experiencing its strongest growth in four years, driven by rising output, increased hiring, and robust demand. PULSE POINTS WHAT HAPPENED: The manufacturing sector in the U.S. is growing at its fastest pace in four years. DETAIL: According to the Institute for Supply Management (ISM), U.S. manufacturing rose to 55.6 in July, the highest since May 2022. According to the ISM’s manufacturing barometer, a reading below 50 means the sector is contracting, while a reading above 50 means the sector is growing. This means that the manufacturing sector had expanded for the seventh month in a row. ISM’s barometer also revealed that payroll growth in manufacturing rose for the first time since September…Open
Data: Institute for Supply Management via FactSet ; Chart: Courtenay Brown/Axios This is the chart that White House economic officials want you to see: A closely watched industry survey suggests a long U.S. manufacturing slump is giving way to a factory rebound. Why it matters: By this measure, the manufacturing recession is over. Activity across the sector expanded for a fifth straight month in May after spending much of the last two years in contraction territory. - But it is happening alongside miserable industry anecdotes about the Iran war's energy shock, tariffs and supply chain chaos. Driving the news: The Institute for Supply Management's manufacturing purchasing managers' index — one of the most closely watched gauges of U.S.…
Data: Census Bureau; Chart: Neil Irwin/Axios We don't know yet how the Iran war and the resulting surge in energy prices will ripple through the U.S. economy. We do know that American consumers were in pretty solid shape before it all began. The big picture: New retail sales and employment data out Wednesday morning point to an underlying strength in consumer demand, propped up by wages that have kept rising. - The question for the months ahead is whether the underlying trends that have kept consumers afloat — including a buoyant stock market and a low-layoff job market — can power it through an era of war-induced shocks and weak hiring. Driving the news: Retail sales rose 0.6% in February, the Census Bureau said, reversing a…
Navarro declared that the biggest Democratic "lie" about the tariffs harming a "blue collar revival," was false because the Institute for Supply Management's (ISM) manufacturing index for January showed that manufacturing was expanding.