Lower new sales resulted in a marked drop in purchasing activity, reflecting a reduced need for materials, and inventories declined. Some firms highlighted a driver shortage hindering efforts to reduce delivery times, S&P Global said in a press release.
Upward pressure on operating expenses, from wage bills, raw material prices, and fuel costs, led to a sharp re-acceleration in input price inflation. Although the rate of increase in costs was steeper than the long-run average, the output charge inflation rate slowed amid efforts to boost sales, even as the pace remained historically elevated.
Employment data indicated only a fractional rise, the slowest pace over the current three-year job creation sequence. Manufacturers saw a slower rise in employment. Weak demand and lower new orders resulted in job cuts at some companies, with wage costs compounding decisions to reduce staff. Backlogs of work contracted sharply, with decreases in the manufacturing sector.
ALCHEMPro News Desk (NB)
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