The Trumpnomics Inflection Point: ISM Confirms Industrial Momentum Is Back
Team,
This is my new piece on the February ISM (Institute of Supply Management) Manufacturing PMI (Purchasing Managers Index) report, released today.
For the second straight month, the ISM Manufacturing Index—propelled by Trump’s policy shift—is signaling a rebirth of American manufacturing.
February’s headline PMI registered 52.4, above the magic 50 threshold signaling expansion. The 0.2-point dip from January was modest—and still above expectations of 51.8.
Look beneath the surface and the Trumpnomics story gets stronger.
New orders surged, factories are humming, and supplier deliveries indicate rising demand.
I always appreciate your comments, and please spread the word.
Peter
For the second straight month, the ISM Manufacturing Index—propelled by Trump’s policy shift—is signaling a rebirth of American manufacturing.
February’s headline PMI registered 52.4, above the magic 50 threshold signaling expansion. The 0.2-point dip from January was modest—and still above expectations of 51.8.
Look beneath the surface and the Trumpnomics story gets stronger. Three of the five core components are firmly in expansion territory.
First, new orders surged to 55.8. This is the key number as the new orders metric is the forward-looking engine of the factory floor. When order books expand at that pace, managers are not preparing for recession. They are preparing to build.
Second, production came in at 53.5. This confirms that those new orders are already translating into output. Factories are not idling; they are humming.
Third, supplier deliveries registered 55.1—meaning delivery times are lengthening, typically a sign of rising demand pressing against capacity.
Skeptics may point to the employment index, which remains slightly below 50 at 48.8. But that figure rose by 0.7 points from the prior month—a clear step in the right direction and consistent with a sector that is stabilizing before adding headcount.
Consider, too, that hiring tends to lag orders and production. Manufacturers first work overtime, then add shifts, and only then add permanent headcount. The pipeline is filling. Labor will follow.
Finally, inventories also remain just below 50. That is not weakness. It reflects disciplined balance-sheet management after years of supply-chain whiplash. Lean inventories in the face of rising new orders set the stage for further production gains.
At the same time, supply managers report actively diversifying away from heavily tariffed countries—evidence that trade policy is reshaping sourcing patterns rather than suppressing demand.
For months, the narrative was that tariffs would suffocate American manufacturing. Instead, what we see is a sector expanding for the second straight month, beating expectations, with robust new orders and rising production.
The ISM index is one of the oldest and most reliable barometers of industrial momentum. At 52.4, it is not whispering. It is speaking clearly.
After years of stagnation and offshoring, the factory floor is stabilizing and beginning to grow again. The combination of tariff leverage, supply-chain realignment, and renewed domestic demand is reshaping the landscape.
Two months do not make a decade-long boom. But they do mark the turn.
Peter Navarro is the White House Senior Counselor for Trade and Manufacturing.



Keep 'em coming, Peter.
All our great country needed, was a new president with a mind for business, growth, prosperity, and peace. ❤️🇺🇸👏