Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that economic activity continued to expand in April though at a slightly slower pace than in March and an indication that most measures are in expansion.At 60.4 the purchasing manager’s composite index (PMI) declined 1.31% since March but remained 1.34% above the level seen a year earlier and still sits very near the highest level seen in over 25 years.
Some respondents indicated increasing pressure on prices as higher energy prices stocked inflationary forces:
"Rapidly rising raw material costs putting extreme pressure on profits." (Food, Beverage & Tobacco Products)
"Plastic resin product prices are climbing so fast that [suppliers] are attempting to increase prices on orders already accepted but not [yet] delivered." (Chemical Products)
"Customers are rebuilding safety stock levels of inventory, and also trying to buy ahead of material price increases." (Plastics & Rubber Products)
