U.S. Institute of Supplier Management (ISM) released the latest data on Monday (3), April manufacturing purchasing managers index (PMI) from a 37-year high back down to 60.7, but the price index is still high, showing that raw materials, parts shortage problems continue to stimulate commodity prices high.
April U.S. ISM manufacturing PMI line item index.
New orders index reported 64.3, the previous value of 68.0
Production index reported 62.5, 68.1
Employment Index at 55.1, vs. 59.6
Supplier delivery index at 75.0 vs. 76.6
Inventory index at 46.5 vs. 50.8
Client Inventory Index at 28.4 vs. 29.9
Price index at 89.6 vs. 85.6
Unfilled Orders Index at 68.2, vs. 67.5
Export orders index at 54.9, vs. 54.5
Raw Materials Import Index at 52.2, vs. 56.7
(Chart: ISM)
Due to capacity constraints, the production index fell back to a three-month low of 62.5 in April, the production dilemma, especially in the automotive industry is the most severe, the current global chip shortage still continues to suppress automotive production. At the same time, the key price index for manufacturing raw material purchases soared to the highest since July 2008.
Inventory index in April to the fastest rate of contraction since August, the client inventory index fell to a record low.
Timothy Fiore, chairman of the ISM manufacturing survey committee, said the new crown virus has affected parts and raw materials supply, and some companies and suppliers are still struggling to meet the growing demand.
Fiore warned that record high supplier lead times, large shortages of key raw materials, rising commodity prices and logistical challenges continue to affect various areas of manufacturing.
Looking ahead, a broad-based economic reboot and strong capital investment are expected to continue to support demand growth, reorganizing the shortage of inventory will bring additional resistance to the manufacturing sector, and in the supply chain issues are largely resolved before the factory fears to increase capacity.
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