Fourteen months since his return to the Oval Office, U.S. manufacturing is indeed running at its hottest pace in nearly four years, but the engine isn’t trade policy.
It’s artificial intelligence.
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The S&P Global US Manufacturing PMI jumped to 54.0 in April from 52.3 in March, a 47-month high. Production growth hit its fastest pace in four years, with new orders posting the biggest monthly increase since May 2022.
“Manufacturers were their most optimistic since February 2025, and thereby confidence was amongst the highest seen since the pandemic,” S&P Global said.
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The AI Tailwind: U.S. Factories Are Running Hot Again
After declining for more than two-and-a-half years, U.S. manufacturing production turned positive last January and has climbed steadily since.
“AI has resuscitated manufacturing activity,” said Bank of America economist Aditya Bhave in a note this week.
Fabricated metals, machinery, computer and electronic products, and electrical equipment are carrying most of the rebound.
The capex math explains why. Hyperscalers, including Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL)(NASDAQ:GOOG), Amazon.com Inc. (NASDAQ:AMZN) and Meta Platforms Inc. (NASDAQ:META), expect ...
