Supply-chain problems are a bear, but they are better than the alternative of waning demand. The worry for some manufacturers has to be that the latter might become a live concern in the months ahead.
The Institute for Supply Management on Monday said that its index of manufacturing activity slipped to 55.4 in April from March’s 57.1. That is still solidly above 50—the dividing line between growth and contraction—but marked the lowest level since July 2020. Moreover, the index got a boost in April from a slowdown in supplier deliveries, which is usually a positive sign for manufacturing, but in the context of ongoing supply-chain issues counts a negative. It was at an elevated 67.2 versus 65.4 in March.
