The index stood at 59.9%, up from 59.5% last month. This is the fifteenth month in a row.
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Growth in the manufacturing sector in the United States was stronger than expected in August, with activity remaining high despite supply and employment challenges, and concerns over the Delta variant, according to the index. ISM professional federation released Wednesday.
The index stood at 59.9%, against 59.5% last month, beating the forecasts of analysts who expected a slight decline to 58.5%. This is the fifteenth month of growth in a row.
The survey shows that “companies and their suppliers continue to struggle like never before to meet growing demand,” ISM survey manager Timothy Fiore said in the statement.
Thus, “all segments of the manufacturing economy are affected by record supply times for raw materials, continued shortages of essential raw materials, rising raw material prices and product transportation difficulties,” says he does.
Good news, however, for manufacturers, prices, whose soaring penalized production, climbed less quickly last month, the index measuring them falling back below the 80% mark (79.4%) for the first time since December. 2020.
Activity is growing when the index is above 50%, and is contracting when it is below that limit. Thus, an index of more than 50%, but down from the previous month, means that activity continued to grow but at a slower pace.
In detail, the rise in new orders is accelerating, as is that of production and backorders.
On the other hand, employment contracted, dropping back below the 50% mark (49%).
And, although the Delta variant adds an additional difficulty, underlines Timothy Fiore, “the optimistic feeling of the panel remained strong”.
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