The latest report by IHS Markit revealed on Friday the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index (PMI) came in at 60.7 in September, down from 61.1 in August but slightly higher than the earlier released “flash” reading of 60.5. Still, the September reading pointed to the slowest growth in factory activity since April.

Economists had forecast the index to stay unrevised at 60.5.

According to the report, the September drop in headline figure reflected weaker production growth, which was hampered by severe material and labour shortages, as supply chain disruption worsened. Demand conditions softened from the peaks seen earlier in the year, but both domestic and foreign client orders expanded at historically elevated rates. On the price front, the pace of input cost inflation deccelarated only slightly from August's series record, causing firms to increase their charges at an unprecedented rate.