Dec 2, 2021 - Economy & Business

Manufacturing signals supply chain breather

 Data: Institute for Supply Management; Chart: Axios Visuals
Data: Institute for Supply Management; Chart: Axios Visuals

Manufacturing activity continued to tick up last month as pockets of the supply chain showed signs of relief, according to a new survey from the Institute for Supply Management.

Why it matters: Despite facing nearly two years of supply chain and consumer demand anomalies, manufacturers continued to increase their output for the 18th month in a row.

  • And even with no near-term relief to these conditions in sight, manufacturers also continued to feel optimistic about the future.

By the numbers: The manufacturing PMI (Purchasing Managers’ Index) expanded by 0.3 percentage points from October to 61.1%.

  • Hiring picked up for the third straight month. While supply delivery continued to slow, the slowdown was smaller than in the previous month.

What we're watching: To get around future delays and shortages, some suppliers stocked up on pre-production inventories, according to a separate manufacturing report from IHS Markit.

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