ISM manufacturing PMI for June 2021
- Prior 61.2
- Prices paid 92.1 versus 88.0 last month
- New orders 66.0 versus 67.0 last month
- Employment falls below the 50 level at 49.9. Last month the index came in at 50.9
- Production 60.8 versus 58.8 last month.
- Supplier deliveries 75.1 versus 78.8 last month
- inventories 51.1 versus 50.8 last month
- customer inventories 30.8 versus 28.0 last month
- backlog of orders 64.5 versus 70.6 last month
- new export orders 56.2 versus 55.4 last month
- imports 61.0 versus 54.0 last month
Prices paid can only go to 100. At 92.1, that is almost there. Employment falls below the 50 level in indicating a tilt to the current traction side.
Some of the comments from respondents:
- “Supply chain constraints, from mechanical to electronics (products) continue to be challenging, from both availability and logistics perspectives. Inflationary pressure on materials due to supply and demand imbalance. Electronic components by far the biggest challenge, with lead times going from 16 weeks to 52-plus weeks. Processors are a critical shortage, leading to us working 24/7 to redesign printed circuit board assemblies to change components. We are extending our PO coverage over 12 months in many cases and committing to non-cancelable, non-returnable (NCNR) terms to assure supply.” [Computer & Electronic Products]
- “Continue to see very strong demand across all business units. In many cases, we are limited on our ability to supply by raw-materials availability. Still running at record volume but could be producing much more. Even if we were able to get all the raw materials needed, we would have capacity issues on many of our production units. Manpower has been a concern.” [Chemical Products]
- “Strong sales continue, and production output is at 100 percent. COVID-19 restrictions have been mostly lifted. Global chip allocation continues to limit some feature offerings – production schedules have been updated to restrict content affected by the chip shortage.” [Transportation Equipment]
- “Poultry markets are higher, as demand for chicken has been very strong. Higher costs are starting to be passed along to customers.” [Food, Beverage & Tobacco Products]
- “No major concerns or activity to report this month. Oil prices have continued to steadily rise, which gives our executive-level management confidence that our capital budgets are set to the correct amounts, and we can proceed with already planned projects without fear that they’ll need to be deferred or canceled due to dynamic oil markets.” [Petroleum & Coal Products]
- “Demand continues to be strong, and customer-ordering patterns are shifting to include long-term demand. Customers are now placing orders for fourth quarter 2021 and first quarter 2022 due to global supply chain issues.” [Fabricated Metal Products]
- “Other than material availability/volatility and rising prices, the outlook for our company is good. We can’t keep up with the increase in orders and have projects that may require a second shift to be added temporarily, but that might not be possible if material availability – for example, lumber products – remains an issue for us.” [Furniture & Related Products]
- “Customer demand remains strong. Supply chain issues continue to hamper materials availability and impact production scheduling. Supplier costs continue to rise due to increasing materials, labor and shipping costs.” [Machinery]
- “Higher prices, inflation and lack of available labor are impacting all organizations in our supply chain.” [Electrical Equipment, Appliances & Components]
- “Supply disruptions continue, with no end in sight!” [Nonmetallic Mineral Products]
- “We continue to be oversold, based on what we are currently capable of producing. Lack of labor is killing us.” [Primary Metals]
This article was originally published by Forexlive.com. Read the original article here.