The U.S. manufacturing sector showed a marked turnaround at the start of 2026, as the ISM Manufacturing PMI rose to 52.6 in January 2026 from 47.9 in December 2025. The latest reading, updated on 02 February 2026, signals a shift from contraction to expansion in factory activity.
The move above the 50-point threshold is significant, as it suggests improving conditions for producers after a period of weakness at the end of last year. While the December figure reflected contraction in the sector, January’s rebound indicates renewed momentum, which may support broader economic growth if the trend continues in the coming months.
