American factories just had their best month in more than four years. The Institute for Supply Management’s manufacturing index, the most widely watched read on factory activity, hit 55.6 in July, the strongest reading since May 2022, with factory employment expanding for the first time since January 2025.
The growth is concentrated in a few places. Companies responding to the ISM survey described data center products at full production ramp, semiconductor orders booming, and defense demand at an all-time high. In the same survey, medical, industrial, and consumer orders came in markedly lower. Machinery plants are running at 82.9% of capacity against a long-run average of 78.2%. Farm income is forecast to finish the year roughly $48 billion below its 2022 record.
Three companies with businesses in both the strong markets and the weak ones reported last week: Deere, Nordson, and Twin Disc. Here’s what they said.
