Summary The ISM index came in at 61.2 in May. The changes in the various sub-components describe a Tantalean punishment for manufacturers. It’s a once-in-a-lifetime demand surge, but long wait times, supply shortages and staffing challenges are preventing factories from ramping up production.
Manufacturing Could Be So Much StrongerThe May ISM manufacturing index surprised on the upside in terms of the headline measure, but the sub-components moved in both directions. The story that emerges is one of a manufacturing sector that could be growing much faster were it not for supply-side growing pains. Supplier deliveries, which in most cycles are not a massive swing factor, has been a key factor since the very first supply chain problems revealed themselves around this time last year. In today’s report, supplier deliveries in May reached the highest level since 1974. READ FULL ARTICLE >>