Strong demand, surging production and the first manufacturing employment growth since September 2023 helped drive momentum despite higher raw-material costs and supply delays. Export and import gauges reached multiyear highs, while manufacturers continue monitoring oil-price volatility and Middle East tensions affecting supply chains. U.S. manufacturing activity expanded in July at the fastest pace in more than four years as demand remained strong, production surged and firms added workers. The Institute for Supply Management's July manufacturing gauge rose to 55.6, the highest since May 2022. ISM's gauge of exports for July was the highest since March 2022 and a measure of imports climbed to its best mark since June 2021.