ISM Manufacturing: New Orders Fall As Inventories Build

Bottom Line: ISM's survey-based index of manufacturing managers still showed modestly positive growth as production held up. But new orders contracted, and inventories continued to build. The difference between new orders and inventories, often a more forward-looking indicator, fell sharply, hitting levels only seen briefly after the initial pandemic shutdowns and during the financial crisis. Overall, manufacturers continue to work off order backlogs that grew amid supply chain constraints, but new order growth and inventory levels suggest production could slow sharply in the coming months.