Today: 15 March 2025
2 September 2021
1 min read

US manufacturing sector expands despite Delta surge, hiring difficulty

The manufacturing sector saw slower growth in July from the prior month, as companies and suppliers continued to struggle to meet increasing levels of demand….reports Asian Lite News

The US manufacturing sector expanded at a faster pace in August despite a Delta variant-fuelled Covid-19 surge and hiring difficulty, the Institute for Supply Management (ISM) reported.

The Purchasing Managers’ Index (PMI) stood at 59.9 per cent, up 0.4 percentage point from the July reading. Any reading above 50 per cent indicates the manufacturing sector is generally expanding.

The manufacturing sector saw slower growth in July from the prior month, as companies and suppliers continued to struggle to meet increasing levels of demand.

The supply-chain constraints persisted in August. The Backlog of Orders Index registered 68.2 percent, 3.2 percentage points higher than the July reading, according to the ISM.

The Employment Index, meanwhile, indicated contraction at 49 per cent, 3.9 percentage points lower compared to the July reading.

“All segments of the manufacturing economy are impacted by record-long raw-materials lead times, continued shortages of critical basic materials, rising commodities prices and difficulties in transporting products,” said Timothy Fiore, chair of the ISM’s manufacturing business survey committee.

The latest resurgence, he noted, are adding to pandemic-related issues – worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems, which continue to limit manufacturing-growth potential.

Optimistic panel sentiment, however, remained strong, with eight positive comments for every cautious comment, Fiore added.

Tim Quinlan, senior economist at Wells Fargo Securities, wrote in an analysis that the latest ISM survey showed that the defining challenges of the Covid-19 era improved in August.

“Wait times are shortening, inventories are being rebuilt and orders remain strong,” he said.

Quinlan, however, highlighted “one clear exception”: businesses cannot find the people to do the work in the nation’s factories.

ALSO READ: US Gen. Milley says coordination with Taliban against Daesh likely

Previous Story

US Gen. Milley says coordination with Taliban against Daesh likely

Next Story

Covid surge wearing US out in multiple sectors

Latest from -Top News

Dubai Glows with Ramadan Spirit

The stunning displays are a key highlight of the second edition of the #RamadanInDubai campaign. Dubai has transformed into a dazzling spectacle of light and artistry in celebration of Ramadan, with grand

UAE Celebrates Emirati Children’s Day

The United Arab Emirates is celebrating Emirati Children’s Day today, reaffirming its dedication to nurturing a safe and supportive environment for the nation’s children. This annual occasion highlights the UAE’s commitment to

US pullback on Gaza plan welcomed 

The Hamas movement also responded positively, stating that the reversal was a welcome move….reports Asian Lite News Palestinian, Jordanian, and Egyptian officials have welcomed US President Donald Trump’s decision to abandon his

Can AI Transform the Future of India-GCC Ties? 

One area where AI can significantly enhance India-GCC cooperation is in the field of supply chain management and logistics. …writes Sudhanshu Kumar and Rashi Randev  Recently, a few months back, the External

Syrian leader signs constitutional declaration 

The declaration enshrines several fundamental rights, including freedom of opinion, expression, the press, and access to information.  Syrian President Ahmad al-Sharaa signed the draft Constitutional Declaration on Thursday, marking a significant step
Go toTop

Don't Miss

Anti-War Protesters Disrupt US Senate Hearing on Israel

Toward the end of his opening statement, Blinken drifted away

Iran Condemns US Threats to ICC Over Israel

Kanaani slammed recent threats by several US Republican Senators against