Back to today’s briefing

Story perspectives

U.S. Manufacturing Surges Amid Trade Uncertainty and Layoffs

2/3/2026

38 9 Full Breakdown

Summary

Manufacturing Expansion Boost

U.S. manufacturing activity expanded in January 2026, with the Institute for Supply Management (ISM) Purchasing Managers’ Index (PMI) reaching 52.6, the highest in 41 months.
The PMI's gain came from a rebound in new orders and production.
Firms cited ongoing trade uncertainties and tariffs that weigh on demand and sentiment.
Employment remains weak as firms plan layoffs amid uncertain demand.
Supply chains are shifting from China to Mexico.

History

Historical Context

The U.S.-China Trade War, initiated in 2018 under President Donald Trump, imposed tariffs on over $360 billion in goods to address trade deficits and protect domestic industries. This conflict has led to significant shifts in supply chains, notably moving from China to Mexico, and has created economic uncertainties, reflected in the January 2026 ISM PMI of 52.6, impacting manufacturing and employment.

1 of 2

Manufacturing Expansion Boost

U.S. manufacturing activity expanded in January 2026, with the Institute for Supply Management (ISM) Purchasing Managers’ Index (PMI) reaching 52.6, the highest in 41 months.
The PMI's gain came from a rebound in new orders and production.
Firms cited ongoing trade uncertainties and tariffs that weigh on demand and sentiment.
Employment remains weak as firms plan layoffs amid uncertain demand.
Supply chains are shifting from China to Mexico.

1 / 2