US manufacturing sector records growth amid supply shortages

Manufacturing activity in the United States seemed to pick up pace in the month of November as supply shortages and delays have disrupted the country’s economy. Suppliers scrambled to align the produce with demand.

The Institute for Supply Management — a coalition of purchasing managers– announced that the manufacturing activity index experienced a boost and ended up at a reading of 61.1 in November. The unit measured 60.8 in September.

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According to reports from Associated Press, any reading that breaches the 50 unit mark is an indicator of growth in the United States manufacturing sector, which recorded 18 straight months of growth going back to spring of 2020 when the pandemic broke.

Sub-categories of new orders, production and employment all grew at a faster pace in November, though many respondents said that they are still struggling to hire, despite some modest progress over the past three months.

The Institute for Supply Management’s report said that 86% of the employment comments related to hiring, with 51% of those respondents saying they are struggling to fill positions, showing a spike when compared to the readings of October.

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Businesses are also struggling to keep their inventories stocked due to elevated demand. The Institute for Supply Management’s customer’s inventories index registered a reading of 25.1 in November, the 62nd straight month that it’s been what is considered too low, according to reports from Associated Press.

The institute further clarified that even though empty shelves are not a good sign for stores, the situation may increase production in the future as a remedy.

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Sectors like furniture and apparel led the growth index last month in the United States while only two out of 15 sectors– primary metals and printing– did not report growth.

ISM said the broad sentiment of its panel remained strongly optimistic, but they “remain focused on the importance of improving supply chain issues to respond to ongoing high levels of demand”, the head of Institute for Supply Management’s survey committee said in a statement.

(With AP inputs)