U.S. Manufacturing Breaks 12-Month Slump as PMI Jumps to 52.6% in January

U.S. manufacturing activity returned to growth in January 2026, ending 12 straight months of contraction, according to the latest ISM Manufacturing PMI report. The PMI rose sharply to 52.6% from 47.9% in December, its strongest level since early 2022. New orders climbed to 57.1%, production increased to 55.9%, and backlogs moved back into growth at 51.6%. The overall economy expanded for a 15th month, while prices continued rising at 59%. Despite the growth, supplier deliveries slowed at 54.4%, inventories stayed in contraction at 47.6%, and customers’ inventories fell deeper into "too low" territory at 38.7%, a level last seen in mid 2022. Employment remained weak at 48.1% despite improvement. Exports edged up 50.2%, imports were unchanged at 50%, and five of the six largest manufacturing industries expanded in January.