The Philadelphia Fed Manufacturing Index rose to 47.4 in August 2026 from 41.4 in July, reaching its highest level since April 2021 and far exceeding economists’ forecast of 25.0. Nearly 57% of firms reported increased activity, compared with 10% reporting declines. The future general activity index jumped 39 points to 73.6, its highest reading since August 1983, as almost 75% of firms anticipated higher activity over the next six months. The future capital-expenditures index rose 18 points to 48.2, its highest level in 53 years, while employment improved to 27.9, the strongest reading since April 2022. New orders and shipments remained in expansion but eased, and price gauges declined while staying elevated. The report marked the third consecutive U.S. manufacturing indicator to beat forecasts, following stronger-than-expected readings from the ISM and New York Fed. The iShares U.S. Manufacturing ETF has gained 29% over the past year, outperforming the QQQ and SPY ETFs.