The prices had maintained at an elevated level of 85.6 because of the high freight costs and container shortages. This also impacted the supplier’s deliveries by +4.6 to 76.6 as a higher number indicated slower deliveries. It seemed that the high freight costs were deterring manufacturers from ordering raw materials.
However, the producers continued to ramp up their production (68.1, +4.9) further which propelled an increase in inventories (50.8, +1.1) and an increase in employment (59.6, +5.2) to prepare for a rebound in the customers’ inventories (29.9, -2.6) which had to be repleted. The increase in new order (68, +3.2) was due to higher new local orders boosted by stimulus cheques.
All these resulted in the PMI increasing to 64.7 (+3.9). This means that the US economy will still continue to improve due to new stimulus cheques.
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