Here's Why Illinois Tool Works Stock Popped Higher Today (Hint: The U.S. Manufacturing Sector is in Growth Mode)
A slew of companies in the manufacturing sector have now reported strengthening conditions.
Overview
Having fallen into the doldrums for a few years, the manufacturing sector was due for a recovery, and according to the widely followed Institute for Supply Management (ISM) Purchasing Managers Index (PMI) survey, 2026 is the year it's taking shape. For reference, after a sustained period of readings below 50 (indicating contraction in the manufacturing economy), the PMI and the New Orders component of the PMI have been solidly above 50 this year.
Still, it's one thing to see positive survey results, and it's another to go through a year in which energy prices have soared and geopolitical tensions are never far from the headlines. That said, the fears of the conflict in the Persian Gulf don't, as yet, appear to have slowed the recovery. A few days ago, Honeywell Technologies upgraded its guidance on the back of improving short-cycle orders, and while 3M's management put its 5.4% year-over-year organic growth in the second quarter down to commercial excellence, it's hard not to think the company had some help from the economy.
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Originally published at www.fool.com.