US Manufacturing Rebounds After Year-Long Slump

ISM Index Hits 52.6, Signaling Expansion in January 2026

Published on Feb. 17, 2026

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The U.S. manufacturing sector has roared back into expansion territory in January 2026, with the Institute for Supply Management (ISM) reporting that its Manufacturing PMI rose to 52.6 last month. This unexpected surge, fueled by a dramatic spike in new orders and production, marks the first time the index has crossed the crucial 50-point threshold of growth since late 2024, signaling that the American industrial heartland has finally shaken off its post-pandemic lethargy.

Why it matters

The rebound in U.S. manufacturing is a significant economic indicator, as the sector is a crucial driver of economic growth and employment. The return to expansion territory suggests that the American industrial base is regaining its footing after the challenges posed by the COVID-19 pandemic, which had led to a prolonged slump in manufacturing activity.

The details

The ISM's Manufacturing PMI, a closely watched gauge of the health of the manufacturing sector, rose to 52.6 in January 2026, up from 49.2 in December 2025. This marked the first time the index has crossed the 50-point threshold, which separates expansion from contraction, since late 2024. The surge was driven by a dramatic increase in new orders and production, as well as improvements in employment and supplier deliveries.

  • The ISM reported the Manufacturing PMI data on February 2, 2026.
  • The index had been below the 50-point threshold since late 2024, signaling a prolonged slump in manufacturing activity.

The players

Institute for Supply Management (ISM)

A non-profit organization that conducts surveys and publishes indices related to the manufacturing and non-manufacturing sectors of the U.S. economy.

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What’s next

Economists will closely monitor the coming months' manufacturing data to see if the January 2026 rebound is the start of a sustained recovery in the sector.

The takeaway

The rebound in U.S. manufacturing, as indicated by the ISM's Manufacturing PMI crossing back into expansion territory, is a positive sign for the broader economy and suggests that the American industrial base is regaining its footing after the challenges of the COVID-19 pandemic.