Tempe’s ISM says US factory activity, nonfarm payrolls surge as economy gaining steam
by SOURAV D | VIEW 1088
On Wednesday, ISM (Institute for Supply Management) data had unveiled that US factory activity gathered steam last month amid a stronger-than-anticipated demands of US-borne core capital goods, however, higher inflation remains a key headache for manufacturers as American factories were reportedly experiencing a persistence shortage of raw materials. Aside from that, in the latest flashpoint of a US economy which appears to be heading towards a strong ending of 2021, other economic data released earlier in the day had unveiled that American private employers had continued to hire at a stronger pace last month with layoffs staying off the grid so far. Nonetheless, US labor market has been bracing for the impacts of Omicron variant, as an insurgence of pandemic outbreak would likely to hurt demands for services and add to holocaust on economic growth. Meanwhile, addressing to an upscaled risk over supply chain issue, a senior economist at Moody’s Analytics in West Chester Pennsylvania, Ryan Sweets said, “Manufacturing should continue to contribute positively to GDP growth over the next year as businesses replenish inventories and supply-chain issues improve.
There are risks, including the potential for businesses overbooking orders now and the Omicron variant magnifying price and supply chain issues”.
US factory activity, private payrolls gain
According to data from the Tempe, Arizona-based world’s largest supply chain association across the globe, ISM’s index for US national factory activity jumped to 61.1 in November compared to a reading of 60.8 a month earlier, beating an analysts’ estimate of 61.0.
Apart from that, bolstering views that the US labor market has been strengthening in fourth-quarter following a relatively dour Q3, 2021, ADP National Employment report had unveiled that US private payrolls added 534,000 jobs in November that followed a gain of 570,000 positions in October.