The Institute of Supplier Management (ISM) released the latest data on Monday (3rd). The Purchasing Managers Index (PMI) of the manufacturing industry in April fell to 60.7 from its 37-year high, but the price index still rose, showing raw materials and parts The stock-out problem continues to stimulate commodity prices to rise.
April US ISM manufacturing PMI breakdown index:
- New orders index reported 64.3, the previous value was 68.0
- The production index reported 62.5, the previous value was 68.1
- Employment index reported 55.1, the previous value was 59.6
- Supplier delivery index reported 75.0, the previous value was 76.6
- Inventory index reported 46.5, the previous value was 50.8
- Client inventory index reported 28.4, the previous value was 29.9
- The price index reported 89.6, the previous value was 85.6
- The uncompleted orders index reported 68.2, the previous value was 67.5
- Export order index reported 54.9, the previous value was 54.5
- The raw material import index reported 52.2, the previous value was 56.7
Due to capacity constraints, the April production index fell to a 3-month low at 62.5. The production dilemma is particularly severe in the automotive industry. The current global chip shortage continues to suppress automotive production. At the same time, the key price index for manufacturing raw material procurement soared to its highest level since July 2008.
The April inventory index shrank at the fastest rate since August, while the client inventory index fell to a historical low.
Timothy Fiore, chairman of the ISM Manufacturing Survey Committee, said that the new crown virus has affected the supply of parts and raw materials, and some companies and suppliers are still struggling to meet the increasing demand.
Fiore warned that record-breaking supplier delivery times, large shortages of key raw materials, rising commodity prices and logistics challenges continue to affect all areas of the manufacturing industry.
Looking ahead, extensive economic restart and strong capital investment are expected to continue to support demand growth. Reorganizing the shortage of inventories will bring additional resistance to the manufacturing industry, and it may be difficult for factories to increase production capacity until supply chain problems are basically resolved.