April US manufacturing survey from the ISM:
- Prior was 64.7 (was highest since 1983)
- Prices paid 89.6 vs 86.0 expected (85.6 prior)
- New orders 64.3 vs 68.0 prior
- Employment 55.1 vs 59.6 prior
If you go by the comments in the report, this is more about supply shortages rather than a dip in demand.
Comments in the report:
- "The current electronics/semiconductor shortage is having tremendous impacts on lead times and pricing. Additionally, there appears to be a general inflation of prices across most, if not all, supply lines." (Computer & Electronic Products)
- "Upstream producers/suppliers are back online and working towards full rates. Demand is outpacing supply and will continue into the third quarter, when the supply chain is expected to be refilled. Supply/demand should be more balanced in Q3/Q4, but demand will continue as customers run hard to meet their demand and rebuild inventory." (Chemical Products)
- "Continued strong sales; however, we have had to trim some production due to the global chip shortage. Hasn't affected inventories greatly yet, but a continued decrease will begin to reduce available inventories if we don't recover chip supply shortly." (Transportation Equipment)
- "Business is picking up as restaurants open." (Food, Beverage & Tobacco Products)
- "Oil production has been steady, along with market prices and capital expenditures." (Petroleum & Coal Products)
- "Steel prices are crazy high. The normal checks on the domestic steel mills are not functioning - imported steel is distorted by the Section 232 tariffs." (Fabricated Metal Products)
- "It's getting much more difficult to supply production with materials that are made with copper or steel. Lots of work on the floor, but I am worried about getting the materials to support." (Electrical Equipment, Appliances & Components)
- "Market capacity in most areas is oversold, with no realistic improvement on the horizon. In fact, it appears that demand will continue to strengthen, leading to more significant disruptions." (Furniture & Related Products)
- "In 35 years of purchasing, I've never seen everything like these extended lead times and rising prices - from colors, film, corrugate to resins, they're all up. The only thing plentiful at present, according to my spam filter, is personal protective equipment [PPE]." (Plastics & Rubber Products)
- "The metals markets remain very challenging at best. Shortages of raw materials have increased, especially in aluminum and carbon steel. Prices continue to rapidly increase. Transportation and trucking [are] also a big challenge." (Primary Metals)
- "Demand continues to be very strong. Supply chain delays hamper our availability and ability to sell more." (Machinery)
