Trump’s Tariff-and-Tax Strategy Is Bringing Manufacturing Home

New manufacturing data points to a strengthening U.S. factory sector, with the ISM Manufacturing Index expanding for a fifth straight month and reaching its highest level since 2022. Rising new orders, production, and factory investment suggest growing industrial momentum, while increased spending on equipment and construction signals efforts to expand domestic manufacturing capacity. The analysis also argues that higher interest rates could slow this recovery by raising costs for manufacturers.