US manufacturing activity slowest in more than 1-1/2 year as voluntary quits rise

by   |  VIEW 1101

US manufacturing activity slowest in more than 1-1/2 year as voluntary quits rise

US factory activity, accountable for roughly an eleven per cent of entire US economic activity, rose by the slowest pace in more than one and a half year in April as voluntary quits grew despite workers’ compensations chartering at an all-time high, while manufacturers appeared to have become more anxious over a potential supply chain disruption due to China’s stiffer pandemic restriction policy.

According to an ISM (Institute for Supply Management) survey report released earlier on the day, the ISM’s index of US national factory activity tumbled to 55.4, marking off the lowest since September 2020. On top of that, on a month-on-month (MoM) basis, ISM’s index for the United States’ national manufacturing activity has witnessed a steep fall in April compared to a reading of 57.1 registered in March.

Aside from that, since the July of 2020, when the Wuhan pandemic outbreak had nearly stalled global manufacturing activities, ISM index for US national factory activity had never fallen below the level logged in April.

US manufacturing activity tumbles to 1-1/2 year low

Meanwhile, addressing to a sustenance in supply chain disruption which appears to have worsened histrionically due to a latest upsurge in pandemic outbreak in China, the ISM Business Survey Committee Chair Timothy Fiore was quoted saying on Monday that the pandemic outbreak had been creating a near-term headwind for US manufacturing community.

Besides, Fiore also added that many manufacturers are afraid over their Asian partners’ - in particular China - ability to delivery supplies over coming months. Nonetheless, an analysts’ poll had forecasted that the index would rise to 57.6 in April.