The latest report from the Institute for Supply Management (ISM) paints a sobering picture of the U.S. manufacturing sector, as it marked its 16th consecutive month of decline in February. What's more concerning is that the pace of decline has accelerated compared to January, signalling deep-rooted challenges within the industry.
With the monthly index registering at 47.8%, this marks the longest period of decline since the aftermath of the 2008 Great Recession. Key factors contributing to this decline are slowing demand, easing output and persistent challenges in the supply chain. Despite efforts to maintain production levels, growth has been stifled by seasonal headwinds, leading to continued layoffs across the sector.
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Among the 18 manufacturing industries tracked by the ISM, only eight reported growth, while seven experienced a decline. Furniture and wood products emerged as the hardest-hit sectors, reflecting broader challenges within manufacturing.
The downturn in new orders persisted for the 18th time in 20 months, with production output slipping back into contraction territory. Employment figures also painted a grim picture, marking the fifth consecutive month of decline, with furniture and wood products among those heavily affected. Supply chain disruptions continue to exacerbate the situation, with furniture manufacturers facing increased costs for raw materials and dwindling order backlogs.
Source: www.furnituretoday.com