According to the Institute of Supply Management’s PMI Index, manufacturing activity continued to grow in October 2021 as “…companies and suppliers continue to deal with an unprecedented number of hurdles to meet increasing demand.” The PMI level was 60.8, down 0.3 points from September’s PMI of 61.1 (a reading above 50.0 is consistent with growth). Production growth slowed the most in October while increases in Prices accelerated the most reaching 85.7. Many of the respondents to the PMI survey indicated that supply chain and workforce challenges were limiting manufacturers’ ability to meet demand, for example:
- “Demand continues to be strong, but we continue to be held back by supply chain issues…” [Electrical Equipment, Appliances & Components]
- “Customer demand remains high. COVID-19 related supply chain issues still hamper our ability to meet demand. Labor is still difficult for our suppliers to obtain, and labor costs are rising.” [Machinery]
- “Demand for our products remains strong, but we continue to struggle to secure enough raw material to keep our manufacturing lines running.” [Miscellaneous Manufacturing]
See the full report here.