US Manufacturing Steady as Costs Gauge Hits Four-Year High

Summary

Michael McKee reviews the latest ISM manufacturing data, noting the headline index held steady at 52.7 but prices paid jumped to a four-year high of 84.6. New orders edged up, employment fell, and backlog orders rose, while export orders declined. McKee highlights that rising raw material, oil, and diesel prices due to geopolitical uncertainty are weighing on demand and confirming the Fed's inflation concerns.

• ISM manufacturing headline index unchanged at 52.7.
• Prices paid gauge surged to 84.6, a four-year high.
• New orders index rose slightly to 54.1 from 53.5.
• Employment index dropped to 46.4 from 48.7.
• Backlog of orders increased to 51.4 from 50.9.
• Export orders fell to 47.9 from 49.9.
• Geopolitical uncertainty and rising oil/diesel prices continue to pressure demand.
• Report confirms inflationary pressures from raw materials stuck in supply chains.