Manufacturing sentiment in the United States strengthened sharply in mid-July, with the Federal Reserve Bank of Philadelphia’s business outlook index jumping to 15.9 from –4.0 a month earlier. Economists surveyed by Bloomberg had expected a reading of –1.0. The figure is the highest since February and breaks a two-month stretch of negative prints, suggesting a pickup in factory activity across eastern Pennsylvania, southern New Jersey and Delaware. Underlying components of the survey also improved. New orders climbed to 18.4 from 2.3, shipments accelerated to 23.7 from 8.3 and the employment gauge swung to 10.3 from –9.8. The index of prices paid rose to 58.8, indicating mounting cost pressures, while the six-month outlook advanced to 21.5, pointing to firmer expectations for the remainder of the year. Earlier in the week, the New York Fed’s Empire State index surprised to the upside at 5.5, reinforcing signs that U.S. factories may be stabilising after a weak spring. The brighter U.S. readings contrast with mixed signals elsewhere. Japan’s manufacturing purchasing managers’ index slipped back into contraction territory at 48.8 amid uncertainty over U.S. trade policy, while the United Kingdom’s composite PMI eased to 51.0 and the CBI’s July survey showed total orders at –30 and business optimism at –27. The divergence underscores a tentative rebound in U.S. industry even as factories in other major economies struggle with sluggish demand and tariff concerns.