On Tuesday, a survey data from Institution of Supply Management (ISM) on US factory activity had revealed an unprecedented uptick in factory sector activities last month, proffering a lifeline to a scuffling US labour market that seemed to be suffering from a chronic laboured breathing lately, as US factory activity grew by its steepest pace in nearly two years and a half in December, since a persistent rise in pandemic cases across the United States appeared to have swayed away consumers’ demands from services sectors to goods.
Nonetheless, ISM, the Tempe, Arizona-based world’s largest supply chain management association, had also warned of a pandemic-driven disruption in supply chains.
US factory activity accelerates at its steepest pace in 2-1/2-year last month
In tandem, according to ISM’s US factory activity survey which had largely echoed an IHS Markit report that had shown an unprecedented scale of rise in manufacturing activity in the United States in December, ISM’s index of national factory activity rose to a reading of 60.7 last month, marking up the index’s highest level since August 2018, from a figure of 57.5 registered in November.
As beforementioned, an IHS Markit survey report on US factory activity released late on Monday had unveiled that the world’s No. 1 economy’s factory sector activity rose to a nearly six-year trough in December, while several analysts were quoted saying that the reports from IHS Markit and Institutions of Supply Management (ISM) would more likely to point out a softening up of a blow on the economy from the pandemic outbreak.
Nonetheless, ISM said that the pandemic outbreak had been keeping a lid on further gains in the US factory activity amid a record rise in US-made capital goods orders over the recent months, while beaconing a shimmering ray of hope, a senior economist at Moody’s Analytics in West Chester, Pennsylvania, Ryan Sweet said following the announcement, “U.S.
manufacturing should fare reasonably well this winter as businesses need to restock inventories and the shift in consumer spending away from services to goods helps manufacturers. ”