Washington (awp / dpa) – Manufacturing activity grew less quickly than expected in October, and slowed compared to September, in the Philadelphia area, still penalized by shortages of raw materials and parts and difficulties in hiring , which limit production.
The index fell 7 points to 23.8 points, according to data from the regional office of the US Central Bank (Fed) released Thursday.
This shows that activity is still growing – because the index is greater than zero – but at a slower pace than the previous month – since the index is falling.
Analysts had expected a slower slowdown, and saw the index fall to 24.5 points.
“The survey indicator for general activity has fallen, the index of new orders has improved and the index of deliveries has remained stable,” said the Philadelphia Fed in its press release.
Prices, for their part, “remained high”, both for purchases of spare parts and raw materials, and for ex-factory selling prices.
Moreover, “the companies surveyed remained generally optimistic about growth over the next six months”, underlines the Fed.
Indeed, demand remains strong, but production is slowed by global supply difficulties, which cause a shortage of spare parts and raw materials. In addition, employers are struggling to attract candidates and therefore do not have enough staff.
“In the future, the voracious demand for goods will keep the assembly lines of factories (…) at a solid rate,” anticipates Oren Klachkin, economist for Oxford Economics, in a note.
“However, growth will be constrained by persistent supply chain disruptions, which we believe will weigh on business until 2022, with the risk of continuing into 2023,” he warns.
afp / buc
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