Institute of Supply Management, the largest and oldest supply management association around the globe having had more than 50,000 members, had issued a statement on Friday saying that its index for US manufacturing activity stepped up further last month, though a raft of manufacturers were reportedly witnessing a delay in receiving raw materials amid a double whammy of a supply chain constraint alongside a strong build-up in price pressures.
In tandem, latest survey report from the Tempe, Arizona-based Institute of Supply Management (ISM), comes over heels of a sweeping bounce back in factory employment last month, which had tumbled to their lowest since November 2020 in August, illustrating an ostensible pick up in payrolls in September following a slowdown in August.
Nevertheless, followed by the announcement, Wall Street had responded swiftly and trade-sensitive Dow wrapped up the day over 1.4 per cent higher despite a turbulent opening of the session. US capital market is awaiting Labour Department’s closely monitored employment report scheduled to be released on next Friday.
US factory activity expands in September
According to the Tempe, Arizona-based world’s oldest supply management association, ISM’s index of US national factory activity rose to 61.1 last month compared to a 59.9 logged in August.
A reading above 50.0 indicates growth, while a figure below 50.0 underscores a contraction. Nonetheless, followed by release of the announcement, several analysts had contemplated last month’s expansion in US factory activity as a surprise extension in August’s gains, which had more likely occurred over a climb in ISM survey’s gauge of supplier deliveries.