The ISM Manufacturing Index fell to an 18-month low in March, due largely to new orders falling by the fastest clip since the COVID-19 induced recession in early 2020. Even with the decline in new orders, survey respondents reported that customer demand remains strong. The Prices Paid Index, however, jumped up to a 9-month high last month as pricing pressures and supply chain disruptions are proving to be persistent. To quote one survey respondent: “The supply situation is getting worse, with lead times extending over 12 months, material not available, and suppliers not quoting or taking orders. Prices on the rise daily.”
