In the face of a barrage of baleful fundamentals underscoring a bottlenecked supply chain, US manufacturing activity accountable for roughly a 11.3 per cent of entire economic activities in the country, grew at a slower-than-anticipated pace last month, an ISM (Institute for Supply Management) survey data released earlier on Monday had unveiled.
In point of fact, latest slowdown in US manufacturing activities as cited by ISM, the Tempe-based one of the world’s oldest business research groups, came against the backdrop of a giant leapfrog in demands following an acceleration in pandemic vaccination campaign that in effect had enabled Biden Administration to ease off pandemic-led restrictions, while a rise in new orders for US-borne core capital goods last month had unleashed further demand-surge.
Nonetheless, despite a roaring demand outlook, the survey data from Institute for Supply Management had unfurled a number of negative fundamentals including a mass-scale shortage of raw materials, record-long lead times, soaring commodities prices alongside troubled supply chains across several industries, pointing towards an imperilled supply chain which in effect had weighed heavily on US manufacturing activities in April.
US manufacturing activity slows in April despite roaring demands
Besides, according to the Tempe-based business research and analytics group, ISM’s index for national factory activity drooled to a reading of 60.7 in April following an upsurge to 64.7 in March, the highest level since December 1983, however, an analysts’ poll had forecasted a figure of 65 for April.
Nevertheless, addressing to the pandemic’s devastating impact on supply chains which could lead to workers’ absence, short-term shutdown in production lines alongside part shortages - causing a widespread disruption while limiting manufacturer’s growth potential – ISM said in a statement, “Companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and materials.
” On top of that, a senior economist at FHN Financial in New York, Will Compernolle said following the announcement, “Manufacturing is struggling to keep up with roaring demand. ”