Supply Shortages, Too Few Workers Threaten Manufacturing’s Recovery

U.S. manufacturing activity slowed in April, falling from its recent 37-year high due to shortages of supplies and labor, according to the Institute for Supply Management’s (ISM) latest report. Still, the index indicated solid growth with all 18 major manufacturing sectors reporting expansion — the first time that has happened since 2014.

Meanwhile, the IHS Markit Flash U.S. Manufacturing report indicated that manufacturing activity expanded at a record pace last month.

Despite the strong demand, supply chain disruptions, “crazy” prices for inputs, and exacerbated labor shortages pose a threat to the recovery, as reported by MarketWatch. 5/4/2021

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