ISM Manufacturing PMI®

Positive
CURRENT VALUE
54.6
Data through: August 2026 · updated Sep 2 · Updates: Monthly (first business day of month)
The three bars show the last 3 months (end-of-month values) for this indicator, oldest left to newest right. Bar height reflects each reading relative to the other two — the tallest is the highest of the three, the shortest the lowest.
↓ 1.8% MoM
What this means right now: ISM Manufacturing PMI is in solid expansion — manufacturing sector is growing at a healthy pace. New orders and production are expanding. A constructive signal for industrials and the overall economic outlook.
ISM Manufacturing PMI® · Monthly · 2026–2026
Grey areas = NBER recessions · Scroll to read · zoom and pan in Expand
Monthly values

ISM Manufacturing PMI® — the last 3 months

Every month's reading, with the band the heatmap gives it. The chart above shows the same series in full.

MonthValueBand
Aug 202654.6Healthy reading
Jul 202655.6Very strong reading
Jun 202653.3Healthy reading

Month-end readings of the same series the chart shows, from ism_mfg. Values are the current record, not point-in-time: a month that has since been revised shows its revised value.

What is the ISM Mfg PMI?

The ISM Manufacturing Purchasing Managers Index (PMI) surveys supply chain executives at manufacturing companies across the United States, asking whether key business conditions — new orders, production, employment, supplier deliveries, and inventories — are better, worse, or the same compared to the prior month. The results are compiled into a single index where readings above 50 indicate expansion and below 50 indicate contraction.

The ISM Manufacturing PMI is a highly regarded leading economic indicator because purchasing managers have direct, real-time visibility into demand for their products. When new orders are rising, factories are expanding. When orders are falling, contraction typically follows within 1-3 months. The PMI is released on the first business day of each month for the prior month — making it one of the timeliest economic indicators available, and one of the most market-moving monthly data releases.

Values on this site are reproduced under an ISM® reprint license, collected forward from the June 2026 report — history here accumulates from that point (no pre-license backfill).

How We Color-Code the ISM Mfg PMI

Our heatmap colors each indicator based on historically significant thresholds:

Above 55
Strong expansion — manufacturing sector growing robustly
52 – 55
Solid expansion — healthy manufacturing growth
50 – 52
Just above the line — modest expansion
48 – 50
Contraction — manufacturing sector shrinking
Below 48
Sharp contraction — significant manufacturing weakness

Historical Extremes — What Happened Next?

When this indicator reaches extreme levels, history shows consistent patterns:

Apr 2020COVID Shutdown
ISM Mfg PMI: 41.5
The sharpest single-month PMI collapse in history — followed by one of the fastest recoveries as factories reopened and pent-up demand surged.
Aug 2018Manufacturing Peak
ISM Mfg PMI: 61.3
The highest ISM Manufacturing reading in 14 years — coincided with peak tariff optimism and strong global demand before the trade war began impacting orders.
2022-2023Post-Boom Contraction
PMI below 50 for 16 months
The longest manufacturing contraction since 2000-2001 — driven by inventory destocking after the COVID supply chain boom, without causing a broader recession.

Investor Checklist — Current Reading

Based on the current ISM Mfg PMI reading of 54.6 (Positive):

Healthy manufacturing growth — supportive for broad equity markets
Industrial and materials sectors benefit most in this environment
Monitor new orders sub-index — it leads the headline PMI by 1-2 months

Frequently Asked Questions

What does a PMI above 50 actually mean?
A PMI above 50 means that more purchasing managers reported improvement than deterioration in the prior month. For example, a PMI of 52 means that approximately 52% of respondents reported better conditions while 48% reported worse. The further above or below 50, the stronger the expansion or contraction signal.
Which sub-index of the ISM report should investors watch most closely?
The New Orders sub-index is the most forward-looking component — it leads the headline PMI by 1-2 months. When new orders are rising, production and employment follow. When new orders fall sharply, the headline PMI typically declines in subsequent months. The Prices Paid sub-index is useful for inflation tracking.
How does ISM Manufacturing relate to the overall economy?
Manufacturing directly accounts for only about 11% of US GDP, but the PMI has outsized predictive power because manufacturing is highly cyclical and responds quickly to changes in demand. Manufacturing often leads the broader economy into and out of recessions. The ISM Services PMI (which covers 80%+ of the economy) is increasingly important for overall economic assessment.
Can the economy be healthy while manufacturing is contracting?
Yes — the 2022-2023 period demonstrated this clearly. Manufacturing contracted for 16 consecutive months while the broader economy continued growing, driven by a robust services sector. In an increasingly service-oriented economy, sustained manufacturing contraction is less automatically recessionary than it was historically.
Why does the ISM report move markets so much?
The ISM Manufacturing PMI is released on the first business day of each month — making it one of the very first economic data points investors receive for the prior month. Its timeliness and reliability as a leading indicator means it consistently moves markets, particularly for industrial stocks, commodity prices, and Treasury yields.