U.S. manufacturers have all they business they can handle, but major shortages are a big headache

The numbers: American businesses are still struggling to cope with broad shortages of key supplies and skilled labor even as customer demand for their goods climbs above pre-pandemic levels.

A survey of U.S.-based manufacturing activity slipped to 60.6% in June from 61.2% in May, according to the Institute for Supply Management. That was slightly below the Wall Street forecast.

Although any number above 60% is exceptional, companies still have lots of worries even as the orders roll in.

Prices for many materials have risen sharply, products aren’t getting delivered on time, and in some cases companies simply lack enough labor to make as much as they can sell, the survey indicated.

The increase in the ISM index was a touch below the forecast of economists surveyed by The Wall Street Journal. The index was expected to total 61%.

Any reading over 50% signals growth.

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