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US output growth hampered further by material shortages, but expansion in new orders remains sharp
October PMITM data from IHS Markit signalled a steep improvement in operating conditions across the U.S. manufacturing sector. Although the overall upturn slowed to the softest in 2021 so far, the expansion in new orders remained sharp and historically elevated. Nonetheless, output growth eased again to the weakest since July 2020 amid capacity constraints including material shortages. A lack of input availability and transportation delays led to a severe deterioration in vendor performance, with input costs rising markedly. At the same time, firms passed through higher input prices to their clients, as charges rose ... (full story)