Supply-chain issues are a bear, however they’re higher than the choice of waning demand. The fear for some producers must be that the latter may develop into a dwell concern within the months forward.
The Institute for Supply Management on Monday stated that its index of producing exercise slipped to 55.4 in April from March’s 57.1. That continues to be solidly above 50—the dividing line between progress and contraction—however marked the bottom stage since July 2020. Moreover, the index bought a lift in April from a slowdown in provider deliveries, which is normally a optimistic signal for manufacturing, however within the context of ongoing supply-chain points counts a damaging. It was at an elevated 67.2 versus 65.4 in March.