According to the latest data from the Institute for Supply Management, expansion in manufacturing is still on the rise despite record-long lead times and wide-scale shortages of critical basic materials. The manufacturing sector as a whole has consistently grown each month since April 2020, a full year of expansion.
The ISM Purchasing Manager’s Index rose half a percentage point to 61.2% in May, growing at a faster rate last month than in April. The production index fell four points to 58.5%, indicating continued growth at a slower rate: like the main index, production has grown consistently since April of last year.
“Record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy,” said Timothy Fiore, who chairs the ISM’s Manufacturing Business Survey Committee. At the same time, he said, optimism among survey respondents increased compared to April.
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