U.S. factory activity unexpectedly expanded in January at the fastest pace in more than three years, as production and demand snapped back, according to the latest survey from the Institute for Supply Management.
The ISM manufacturing PMI (purchasing managers’ index) jumped to 52.6 in January from 47.9 in December — clearing the 50 mark that signals expansion for the first time in 12 months and beating economists’ expectations,
The rebound was driven by stronger demand. New orders helped lift sentiment, while the production index climbed to its highest level since early 2022 and order backlogs also strengthened, ISM said.
By industry, five of the six largest manufacturing categories expanded — including transportation equipment, machinery, chemicals, food/beverage/tobacco, and electronics.
U.S. factory activity unexpectedly expanded in January at the fastest pace in more than three years, as production and demand recovered strongly https://t.co/3btJf2Y26X
— The Wall Street Journal (@WSJ) February 2, 2026
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