US ISM Manufacturing: First sign of a thaw in the supply chain crisis – Wells Fargo
|The ISM Manufacturing Index showed an improvement in November, in line with market expectations. According to analysts at Wells Fargo, the report is the first sign of a thaw in the supply chain crisis. They warn that it is way too early to say that things are materially improving, but it is a welcome sign that 2021 could bring with it a return toward stability.
Key Quotes:
“We are not out of the woods by any means, but wait times for supplier deliveries and prices both fell by more than three points in November. The fact that this occurred alongside an improvement in orders and employment makes this ISM manufacturing release the best report card for the manufacturing sector that we have seen in months—a welcome indication that the choke points in the supply chain are clearing, if only incrementally.”
“Today’s ISM manufacturing index for November came in at 61.1 and lands in the center of a week defined by increased financial market volatility surrounding the Fed’s inclination to accelerate its tapering plans. Financial markets are struggling to determine whether the economy is actually overheating or if activity is already moderating somewhat, a task made more difficult by the latest variant of the virus that has set the timetable for the economy for nearly two years.”
“Some manufacturers are starting to find the help they need. The employment component rose to 53.3 in November. That is the highest reading since April and suggests that this Friday's jobs report could see a hiring boost in the manufacturing sector.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.