Growth in the U.S. industrial sector slipped over 37 years ago last month, as manufacturers struggled to meet the demands of lower prices and rising commodity prices.
The Institute for Supply Management on Monday said its index performance index dropped to 60.7 from a 64.7 count in March, which showed the biggest growth since December 1983.
Economists are looking for growth to happen faster in April, with the ISM index rising to 65.
The shortage of semiconductors and other components has severely damaged the chains, making the wrench available to manufacturers to meet requirements such as vaccination and the reduction of coronavirus cases further boosting the U.S. economy.
Factories are also experiencing rising prices in a number of areas. Prices for ISM surveys paid by manufacturers jumped four points to 89.6, the highest number since July 2008.
Timothy Fiore, chairman of the ISM business development committee, said members of the group “also said that their companies and suppliers continue to fight the rising cost of coronavirus (Covid-19) which impedes access to goods and services”. .
“More recent developments, a sharp reduction in the necessary equipment, higher inflation and greater transportation costs continue to affect all economic sectors,” he said.
Temporary closures due to lack of staff, staff shortages and difficulties in fulfilling responsibilities also contribute to growth in the sector, according to Fiore.
However, business prospects continued to improve during the month, as demand continued to grow, hiring people for the fifth straight month and improving the balance that continued to grow.
Researchers at Oxford Economics said the report “the data was still valid”.
“Production remains strong, and industries will not run out of oil as soon as they are shifted to work and away from goods. Looking ahead, economic recovery, capital gains, economic stimulus, and revitalization of global growth will help revitalize manufacturing jobs,” he added.