Despite ongoing supply chain, workforce and Covid issues, American manufacturing expanded in August according to the Institute for Supply Management’s PMI Index released today. The overall index rose to 59.9 from 59.5 the previous month (a reading above 50.0 indicates growth) led by increases in New Orders and Production, while the growth in Prices slowed slightly. Survey respondents reported:
- “Supply chain functions have been relentlessly challenging. All things from freight (both over road and ocean), already constrained labor forces are further exacerbated by COVID-19 absenteeism. Also, high prices everywhere are wearing our employees down.” (Food, Beverage & Tobacco Products)
- “…we are unable to raise production rates due to supplier parts and manpower challenges.” (Machinery)
- “Continue to be unable to hire hourly personnel or machine operators…Steel and aluminum remain in short supply.”
(Fabricated Metal Products)
- “Business is going strong, but raw material prices still under increasing price pressure. Labor is still an issue.”
(Plastics & Rubber Products)
See the full report here.