U.S. factory activity showed a broad-based improvement in July, with three closely watched regional Federal Reserve surveys all moving into positive territory for the first time in months. The New York Fed’s Empire State Manufacturing Index climbed to 5.5 from −16.0 in June, confounding economists who had penciled in another contraction. It is the gauge’s strongest reading since February 2025. Stronger momentum was evident in the mid-Atlantic. The Philadelphia Fed’s Manufacturing Index jumped to 15.9—also the highest since February—after registering −4.0 a month earlier. Under the hood, new orders surged to 18.4 from 2.3, shipments to 23.7 from 8.3, and the employment component swung to 10.3 from −9.8, pointing to broad gains in demand and hiring. In the Southwest, the Dallas Fed’s Manufacturing Business Index turned positive for the first time since January, rising to 0.9 from −12.7. The production sub-index accelerated to 21.3, its best level in more than three years, while the survey’s general business-activity measure improved to 0.9 from −12.7. Although each regional index covers a limited geography, together they suggest that the nationwide manufacturing sector is stabilizing after a prolonged slump, offering an early signal ahead of the Institute for Supply Management’s July report due next week.