Washington (awp / afp) – The growth of the manufacturing sector in the United States slowed as expected in October, still penalized by supply difficulties and lack of personnel, even though demand remains very strong, according to the index of the professional federation ISM published Monday.
The index stood at 60.8%, up from 61.1% in September. This is a little better than expected by analysts, who expected 60.5%.
This is the seventeenth month of growth in a row.
Activity is growing when the index is above 50%; it contracts when it is below this limit. Thus, an index above 50%, but down compared to the previous month, means that activity continued to grow but at a slower pace.
In detail, the indices measuring new orders, production and employment are on the rise. On the other hand, deliveries from suppliers slow down a lot, which then penalizes the production lines.
In addition, prices continue to rise.
Global issues related to the pandemic – worker absenteeism, temporary closures due to parts shortages, difficulties filling vacancies and overseas supply chain issues – continue to limit manufacturing growth potential. “, said the head of the ISM survey, Timothy Fiore, in the press release.
Global supply difficulties are causing delays and shortages, which should take months to resolve. Especially since demand is strong from American consumers.
These difficulties drive up prices, a phenomenon accentuated by the shortage of manpower, which pushes many employers to increase wages to find staff.
The Biden administration reiterates that the high inflation, which should certainly remain high in the coming months, is only temporary, and that the pressure on energy prices, in particular, should ease.
In September, year on year, inflation accelerated again to 4.4%, according to the PCE index released on Friday. But compared to the previous month, the price increase was stable at 0.3%.
Excluding volatile food and energy prices, inflation even slows down over one month (0.2% against 0.3%) and is stable over one year (3.6%).
afp / jh
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