The latest reading on America’s manufacturing activity has provided yet another piece of evidence that the U.S. economy is firing on all cylinders.

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In August, economic activity in the U.S. manufacturing sector hit its highest level since May 2004, according to the Institute of Supply Management (ISM). The ISM’s August manufacturing index was 61.3, above the 57.7 economists were expecting, and also above July’s 58.1 reading.

According to ISM, sales of factory-made products, output and employment all increased in August, while inflation slowed.

Recent tax cuts and strong consumer sentiment are positives for the U.S. economy, but manufacturers have expressed concerns about cost pressures due rising employee wages and supply chain inefficiencies. Additionally, survey participants voiced anxieties about how reciprocal tariffs will impact company revenue and current manufacturing locations.

Of the 18 manufacturing industries, 16 reported growth in August.