US Business Activity Slumps to 8-Month Low Amid Worsening Material, Labour Shortages

Business activity across the US continues to decline, as an increasing number of businesses and companies face worsening material and labour shortages.

The latest IHS Markit flash composite index of purchasing managers at services and manufacturers for August slumped from 59.9 to 55.4, marking a steady monthly decline since soaring to a record-high of 68.7 in May. Similarly, the index’s reading of services activity also slowed in August, falling to the slowest pace since December.

On the other hand, the index showed that both input and output prices soared to the highest level on the survey’s record, as inflationary pressures continue to mount. The composite index of input prices soared to the second-highest reading on records dating back to 2009, while the measure of prices received also rose in August. Companies across the US struggle to fill positions that were previously vacated during the pandemic, further adding to rising inflationary pressures. In the meantime, global supply chain disruptions create added headaches when it comes to sourcing materials.

“Not only have supply chain delays hit a new survey record high, but the August survey saw increasing frustrations in relation to hiring,” explained IHS Markit chief business economist Chris Williamson in a statement. “Jobs growth waned to the lowest since July of last year as companies either failed to find suitable staff or existing workers switched jobs.”

Information for this briefing was found via IHS Markit. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

It’s Still Just Transitory: Canadian Inflation Surges to Highest Since 2011

Did it feel like your pocketbook was ripped to shreds last month? That’s because it...

Thursday, June 17, 2021, 04:56:00 PM

Janet Yellen Eats Her Words: ‘I Was Wrong’ on Inflation

In the most direct admission yet, Treasury Secretary Janet Yellen said she got everything totally...

Thursday, June 2, 2022, 02:50:00 PM

US Treasury Yields Respond To Fed’s Relaxed Inflation Policy

US bond markets appeared to have reacted rebelliously to the Federal Reserve’s phlegmatic stance on...

Friday, March 19, 2021, 10:34:00 AM

Jack Dorsey Sounds Alarm Over Hyperinflation After Twitter ‘Mistakenly’ Censors GOP Lawmaker’s Post About… Inflation

Jack Dorsey may have to flag his own tweet as “sensitive content,” after the Twitter...

Tuesday, October 26, 2021, 10:08:00 AM

FOMC Preview: Will The Fed Hike The US Economy Straight Into a Recession?

With a sixth interest rate hike en route this week, some economists are sounding the...

Tuesday, November 1, 2022, 08:44:57 PM