US manufacturing maintains expansion momentum, price index hits four-year high

The Institute for Supply Management (ISM) in the United States released data on Friday showing that the indicator measuring manufacturing input prices has risen for the fourth consecutive month, reaching 84.6, a four-year high. The overall manufacturing activity index remained steady at 52.7, matching the highest level since 2022. A reading above 50 indicates that the industry is in an expansion phase. Military conflict in the Middle East and the disruption of the Strait of Hormuz have disturbed the global supply chain, driving up costs for materials such as oil, aluminum, and helium. The rise in gasoline and diesel prices also makes product transportation more expensive. Persistent inflationary pressure may prompt manufacturers to raise their selling prices, ultimately leading to higher prices for consumer goods.