The ISM index stood at 60.6% in June (-0.6 points), its lowest level since January. It is also a level lower than the 61% expected by analysts.
–
Growth in the US manufacturing sector slowed a little more than expected in June as manufacturers struggled to meet demand due to supply issues, according to the ISM purchasing managers index released on Thursday. .
If the American economic rebound continues, the reopening is accompanied by the shortage of manpower and difficulties in obtaining raw materials.
The index thus stood at 60.6% in June (-0.6 point), its lowest level since January. It is also a level lower than the 61% expected by analysts.
It nevertheless reflects sustained growth since an index above 50% means that the activity is expanding. Below this threshold, activity is in contraction.
New orders also fell, but production jumped 2.3 points to 60.8%, well above the 50% threshold.
However, the component measuring employment fell to 49.9%, indicating a slowdown in hiring after six consecutive months of increases.
Respondents “reported that their businesses and suppliers continue to struggle to meet increasing levels of demand,” ISM survey manager Timothy Fiore said, noting the long delivery times, rising prices and some “large-scale shortages of essential basic materials”.
In addition, he warned that “worker absenteeism, short-term closings due to parts shortages and difficulties in filling vacancies continue to be problems limiting the growth potential of manufacturing.”
However, morale is high, as 17 of the 18 sectors studied were growing and none recorded a decline in June.
–
