Economy
June 1, 2021
ISM Report on Business: Orders Improve Despite Supply Challenges
Written by Sandy Williams
New orders, production and employment picked up in May despite slower supplier deliveries and lengthening backlogs, said the Institute for Supply Management in the May 2021 Manufacturing ISM Report on Business. The Manufacturing PMI rose 0.5 percentage point to 61.2 after contracting in April and indicates expansion for the overall economy.
“Manufacturing performed well for the 12th straight month, with demand, consumption and inputs registering strong growth compared to April. Panelists’ companies and their supply chains continue to struggle to respond to strong demand due to the difficulty in hiring and retaining direct labor. Record backlogs, customer inventories and raw material lead times are being reported. The manufacturing recovery has transitioned from first addressing demand headwinds to now overcoming labor obstacles across the entire value chain,” said Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee.
