Economics
Gain in U.S. Factory Gauge Belies Labor, Supply Constraints
- ISM index improves in May after cooling a month earlier
- Supply chain constraints limit production, hiring growth
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A gauge of U.S. manufacturing quickened in May, propelled by stronger growth in orders -- which factories are having trouble satisfying because of supply shortages and labor constraints.
A measure of factory activity rose to 61.2 from 60.7 a month earlier, according to data released Tuesday by the Institute for Supply Management. Readings above 50 indicate expansion, and the May figure was about in line with projections. The report also showed still-elevated input prices and a fresh high in order backlogs.