WASHINGTON, USA — U.S. manufacturing activity was weaker than expected in July, but there were signs that supply constraints were easing and prices for raw materials paid by factories plunged to their lowest level in two years.
A survey by the Institute for Supply Management on Monday 1 August showed that manufacturing jobs had stopped for the third straight month, but Timothy Fiore, Chairman of the ISM Manufacturing Research Commission, said:
His ISM data, which outperformed expectations, shows the economy is not in recession even though gross domestic product contracted in the first half of this year.
However, companies are having excess inventory after over-ordering amid fears of inventory shortages, which is putting pressure on orders.
“The post-pandemic restocking cycle is coming to an end as demand for consumer goods slows,” said Pooja Sriram, an economist at Barclays in New York.
Originally published at https://businessdor.com on January 27, 2023.
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