U.S. manufacturing decelerates on restricted supply
The United States saw a decline in its manufacturing activity in April. The contraction came after inputs decreased on rising coronavirus vaccinations and massive fiscal stimulus.
The Institute for Supply Management’s index of national factory activity was read at 60.7 last month. The figure placed lower than the 64.7 reading seen in March, which was the highest since December 1983. More so, it came milder than the 65 forecast rendered by analysts in a Reuters survey.
While there was a drop, the index still stood above the 50 threshold that separates growth from decline. U.S. President Joe Biden’s stimulus package and rapid vaccination programs across the country supported demand, but it negatively affected supply constraints. The Federal Reserve expects that this would be resolved as workers and businesses remain extremely lean.