News Ebene – CA – US Factory growth recovers as supply chain persists – BNN Bloomberg

44 min ago

Growth at US manufacturers slowed in April as persistent supply chain problems and material shortages limited production efforts and increased backlogs

A plant activity gauge fell to 607 from an over 37-year high of 647 a month earlier, according to data from the Institute for Supply Management released on Monday Readings above 50 indicate expansion, and the figure lags all estimates in a Bloomberg survey of economists

Persistent supply issues are dampening otherwise robust manufacturing momentum, leading to record arrears and pushing up materials prices Factories and their customers reduced inventories to meet strong demand, ISM figures show

Purchasing officials have reported that their businesses and suppliers continue to struggle to meet increasing rates of demand due to the impacts of coronaviruses limiting the availability of parts and materials, â € “ Timothy Fiore, chairman of the ISM Manufacturing Firms Inquiry Committee, said in a statement

– Recent record delays, large-scale shortages of essential raw materials, rising raw material prices and difficulties in transporting products continue to affect all segments of the manufacturing economy, â ??? ? Fiore said

For the first time since 2014, all 18 manufacturing industries recorded growth Electrical equipment and appliances, textiles, furniture and machinery were among those that experienced the largest expansions in April

The ISM’s production measure softened to a three-month low at 625, held back by such capacity constraints Semiconductor chip shortages have choked output at auto factories

Meanwhile, the group’s gauge of prices paid for materials has climbed to the highest since July 2008, highlighting input shortages

A measure of factory inventories contracted at the fastest pace since August, while an index of customer inventories fell to a new all-time high

New ISM orders and employment measures also jumped to 643 and 551 respectively Ahead of the release of the government’s monthly employment report on Friday, economists forecast the biggest monthly gain in manufacturing payrolls since June Economists expect overall employment to increase by 980,000

Other manufacturing surveys highlight underlying strength of sector Most regional Federal Reserve factory surveys improved in April, while IHS Markit manufacturing index rose as well compared to a month earlier

A wider reopening of the economy and strong capital investment in the future should support demand Depressed inventory rebuilding will provide additional tailwind for the sector

However, until supply chain issues are largely resolved, factories will struggle to expand capacity

Purchasing Managers Index, Manufacturing, United States Dollar, Institute for Supply Management

Ebene News – CA – US Factory growth recovers as supply chain supply persists – BNN Bloomberg

Source: http://www.bnnbloomberg.ca/u-s-factory-growth-settles-back-as-supply-chain-snags-linger-1.1598526