United States Manufacturing PMI

The IHS Markit US Manufacturing PMI was revised slightly lower to 57.7 in December of 2021 from a preliminary of 57.8, still pointing to a strong expansion in factory activity. Still, companies recorded the softest rise in new orders for a year and a further substantial deterioration in vendor performance amid severe material shortages. Longer lead times for inputs also led to another sharp increase in backlogs of work, albeit the slowest for ten months. Meanwhile, cost burdens continued to increase markedly despite the rate of inflation softening to the slowest since June. Efforts to pass-through greater costs to clients were hampered by softer demand conditions, as charges rose at the slowest rate since April. Finally, output expectations for the year ahead strengthened to the highest since November 2020. Optimism stemmed from hopes of reduced supply disruption and a greater ability to hire suitable workers.