FX.co ★ US Factory Activity Expands for 2nd Month: ISM

The ISM Manufacturing PMI eased to 52.4 in February 2026 from 52.6 in January, but remained above market expectations of 51.8. The reading signaled a second consecutive month of expansion in the manufacturing sector, though at a slightly slower pace.

Growth moderated in new orders (55.8 vs. 57.1) and production (53.5 vs. 55.9), while both employment (48.8 vs. 48.1) and inventories (48.8 vs. 47.6) stayed in contraction territory. At the same time, price pressures intensified, with the prices index climbing to its highest level since June 2022 (70.5 vs. 59), driven by higher costs for steel and aluminum as well as tariffs on many imported goods. Supplier deliveries (55.1 vs. 54.4) pointed to further slowing for a third consecutive month.

“Of the six largest manufacturing industries, four (Chemical Products; Machinery; Transportation Equipment; and Computer & Electronic Products) expanded in February,” said Susan Spence, Chair of the ISM Manufacturing Business Survey Committee.