It’s the supply chain, stupid

A recent report from the US Institute for Supply Management (ISM) showed the US manufacturing sector continued to grow in July, but that the pace of growth was dampened by lower demand. The ISM’s manufacturing index dipped to 52.8%, just two-tenths below June. However, this was the lowest level since June 2020 – during the pandemic downturn.
"The US manufacturing sector continues expanding – though slightly less so in July – as new order rates continue to contract, supplier deliveries improve and prices soften to acceptable levels,” ISM manufacturing survey chair Timothy Fiore said.
Covid-19 lockdowns in China and Russia’s war in Ukraine have been exacerbating shortages, fuelling the global inflation surge, especially for energy, and have prompted the US Federal Reserve to raise borrowing costs aggressively.
Survey respondents noted ongoing supply issues and the impact of rising prices, and several expressed concern about the future.
“Our markets are still holding up; however, I believe a slowdown is coming,” one said. “I...