More U.S. factory workers are quitting their jobs as activity grew to its slowest pace in two years last month.
According to a survey from the Institute for Supply Management (ISM), the manufacturing industry is in a state of flux, where demand is continuing to rise, but supply chains remain limited.
ISM’s index of national factory activity dipped to 55.4 last month compared to 57.1 in March, which is the lowest level seen since July 2020. A poll conducted by Reuters showed that forecasts for April were even higher than March’s levels at 57.6.
Still, computer and electronic products, food, chemical products, machinery, and transportation equipment industries all saw moderate-to-strong growth.
While chemical and food manufacturers experienced lags in the supply, the transportations equipment industry noted “improvements in the supply chain.”
In China, recent waves of coronavirus have led the country to go into full lockdown as it aims to curb the spread through its zero-Covid policy. However, this is having rippling effects across the entire world.
According to Timothy Fiore, Manufacturing Business Survey Committee chair at ISM, these outbreaks are leaving manufacturers concerned “about their Asian partners’ ability to deliver reliably in the summer months.”