Manufacturing falls in the final revision
- Prelim was 59.2
- 60.7 prior
Chris Williamson, Chief Business Economist at IHS Markit
said:
“October saw US manufacturers report yet another near-record
lengthening of supply chains, with shortages of components
constraining production growth to the lowest since July of last
year. Around half of all companies reporting lower production in
October attributed the decline to a lack of supplies. However, a
further one-in-ten cited a lack of labor, and one-in-four reported
that demand had fallen, often as a result of customers either
lacking other inputs or pushing back on higher prices.“Although production growth has now slipped below the
pre-pandemic long-run average due to the supply and
labor constraints, demand growth – as measured by new
order inflows – remains well above trend despite easing in
October, hence producers saw another steep rise in backlogs
of uncompleted work. This shortfall of production relative to
demand was the principal driving force behind a survey record
rise in manufacturers’ selling prices, suggesting that inflationary
pressures continue to build and look unlikely to abate to any
significant degree any time soon.”