April US ISM manufacturing 60.7 vs 65.0 expected
2 min readApril US manufacturing survey from the ISM:
- Prior was 64.7 (was highest since 1983)
- Prices paid 89.6 vs 86.0 expected (85.6 prior)
- New orders 64.3 vs 68.0 prior
- Employment 55.1 vs 59.6 prior
If you go by the comments in the report, this is more about supply shortages rather than a dip in demand.
- “The current electronics/semiconductor shortage is having tremendous
impacts on lead times and pricing. Additionally, there appears to be a
general inflation of prices across most, if not all, supply lines.”
(Computer & Electronic Products) - “Upstream producers/suppliers are back online and working towards
full rates. Demand is outpacing supply and will continue into the third
quarter, when the supply chain is expected to be refilled. Supply/demand
should be more balanced in Q3/Q4, but demand will continue as customers
run hard to meet their demand and rebuild inventory.” (Chemical
Products) - “Continued strong sales; however, we have had to trim some
production due to the global chip shortage. Hasn’t affected inventories
greatly yet, but a continued decrease will begin to reduce available
inventories if we don’t recover chip supply shortly.” (Transportation
Equipment) - “Business is picking up as restaurants open.” (Food, Beverage & Tobacco Products)
- “Oil production has been steady, along with market prices and capital expenditures.” (Petroleum & Coal Products)
- “Steel prices are crazy high. The normal checks on the domestic
steel mills are not functioning – imported steel is distorted by the
Section 232 tariffs.” (Fabricated Metal Products) - “It’s getting much more difficult to supply production with
materials that are made with copper or steel. Lots of work on the floor,
but I am worried about getting the materials to support.” (Electrical
Equipment, Appliances & Components) - “Market capacity in most areas is oversold, with no realistic
improvement on the horizon. In fact, it appears that demand will
continue to strengthen, leading to more significant disruptions.”
(Furniture & Related Products) - “In 35 years of purchasing, I’ve never seen everything like these
extended lead times and rising prices – from colors, film, corrugate to
resins, they’re all up. The only thing plentiful at present, according
to my spam filter, is personal protective equipment [PPE].” (Plastics
& Rubber Products) - “The metals markets remain very challenging at best. Shortages of
raw materials have increased, especially in aluminum and carbon steel.
Prices continue to rapidly increase. Transportation and trucking [are]
also a big challenge.” (Primary Metals) - “Demand continues to be very strong. Supply chain delays hamper our availability and ability to sell more.” (Machinery)
