This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Factories Took a Small Step Back Toward Normal
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Factories Took a Small Step Back Toward Normal
Markets

Factories Took a Small Step Back Toward Normal

Editorial Board Published January 4, 2022
Share
Factories Took a Small Step Back Toward Normal
SHARE

December’s slip in the manufacturing index suggests that supply-chain problems are easing and that demand is beginning to be more easily met.

Photo: Sergio Flores for The Wall Street Journal

By

Justin Lahart

Updated Jan. 4, 2022 12:40 pm ET

American manufacturers ran a wee bit less hot last month. How that happened is what matters.

On Tuesday the Institute for Supply Management said that its index of manufacturing activity slipped to 58.7 in December from 61.1 in November. Anything over 50 counts as an expansion in activity, so it isn’t as if factories weren’t still very busy last month. Economists had expected to see activity recede more slowly, though.

Last month was when the Omicron wave of Covid-19 began to hit, but the manufacturing report didn’t offer any indication that it was the factor slowing factories down. What it suggested instead was that supply-chain problems are easing and that demand is beginning to be more easily met.

A big part of why the manufacturing index slipped was that one of its component indexes, measuring supplier delivery times, slipped to 64.9 in December from 72.2 in November. Speedier delivery times are usually an indication that things are slowing down, but with all the bottlenecks manufacturers have been facing, this probably comes as more of a relief than anything else.

Indexes measuring new orders and production also slipped slightly, though, suggesting that business was getting a little less frantic. And an index measuring manufacturing employment rose, which could mean that hiring strains are easing. Finally, an index of prices that manufacturers have been paying slipped, indicating that materials shortages are beginning to ease.

Even with constraints easing, factories look as though they will still be very busy in the months ahead. An index of customers’ inventories registered 31.7 in December—better than November’s 25.1, but still suggesting that shelves are too bare. And an index of order backlogs rose to 62.8 from 61.9.

Therefore, the first part of this year could still mark a period of transition with factories edging their way back to something that seems a little more normal. Supplies might come a little more quickly, orders might get filled a little faster, and prices might rise a little less quickly. After 2021, those would be welcome changes.

Write to Justin Lahart at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the January 5, 2022, print edition as ‘Factories Took Small Step Toward Normal.’

Contents
December’s slip in the manufacturing index suggests that supply-chain problems are easing and that demand is beginning to be more easily met.Justin Lahart
TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Nancy Pelosi accused of hiding information on her role in security breakdown on Jan. 6 Nancy Pelosi accused of hiding information on her role in security breakdown on Jan. 6
Next Article EVs Could Revive Detroit’s Supply-Chain Woes EVs Could Revive Detroit’s Supply-Chain Woes

Editor's Pick

A brand new elite member bank card is out as issuers goal rich prospects

A brand new elite member bank card is out as issuers goal rich prospects

A ‘Mornings with Maria’ panel offers their reactions to the December jobs report, detailing the influence it could have on…

By Editorial Board 5 Min Read
Google commits B to coach US school college students in synthetic intelligence over three years
Google commits $1B to coach US school college students in synthetic intelligence over three years

NVIDIA CEO and co-founder Jensen Huang commends President Donald Trump’s A.I. agenda…

7 Min Read
Two-Legged Chihuahua Saves Proprietor’s Life by Detecting Coronary heart Assault
Two-Legged Chihuahua Saves Proprietor’s Life by Detecting Coronary heart Assault

Andrew with Champ – credit score, SWNS A two-legged Chihuahua named Champ…

3 Min Read

Oponion

Discover Is Bringing a Payment Option Popular in Asia to the U.S.

Discover Is Bringing a Payment Option Popular in Asia to the U.S.

Discover Financial Services will soon give U.S. merchants the option…

February 14, 2022

Conan O’Brien Loses Each Dad and mom In a Single Week

A number of sources have now…

December 13, 2024

Australia to Beef Up High-Tech Prowess After Security Pact With U.S.

SYDNEY—Australia will strengthen its capabilities in…

November 17, 2021

Invoice Clinton admitted to hospital for ‘testing and observation’ after falling unwell

You may have reached your most…

December 24, 2024

Manufacturers’ Reprieve Could Be Ruined by Omicron—or Not

American manufacturers’ supply-chain problems began to…

December 1, 2021

You Might Also Like

Trump’s tariff menace places semiconductors on show
Markets

Trump’s tariff menace places semiconductors on show

Evans Could Wealth managing companion Elizabeth Evans makes the case that company earnings proceed to be 'resilient' and divulges which…

3 Min Read
White Home says Apple to announce 0B US funding dedication for manufacturing
Markets

White Home says Apple to announce $100B US funding dedication for manufacturing

CFRA Senior Vice President Angelo Zino shares his optimistic outlook on the A.I. funding market and extra on Making Cash.…

2 Min Read
Markets now betting Fed will minimize charges in September after disappointing jobs report
Markets

Markets now betting Fed will minimize charges in September after disappointing jobs report

Morgan Stanley Wealth administration CIO Lisa Shalett joins ‘Barrons Roundtable’ to research the present market outlook for traders after the…

3 Min Read
ETF buyers take ‘man of steel’ view, inflows on tempo for file 12 months
Markets

ETF buyers take ‘man of steel’ view, inflows on tempo for file 12 months

Vertiv CEO Giordano Albertazzi discusses AI energy firms on 'The Claman Countdown.' Regardless of the whiplash of President Donald Trump’s…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?