The Institute for Supply Management (ISM) survey on Jan. 4 also suggested some improvement in labor supply, with a gauge of factory employment rising to an eight-month high.
Still, Timothy Fiore, chair of the ISM manufacturing business survey committee, noted "shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products continue to plague reliable consumption."
The survey does not fully capture the impact of the Omicron COVID-19 variant, which is rapidly spreading across the U.S. and abroad. Sky-rocketing infections could force workers to stay home and halt the tentative supply-chain progress.