The latest report from the Institute for Supply Management (ISM) reveals a noticeable acceleration in several crucial economic sectors during August. This uptick, however, is primarily attributed to businesses actively recalibrating supply chains rather than a straightforward rebound. Companies are adapting to lingering disruptions by optimizing inventory levels, diversifying sources, and ramping up production capacities to meet shifting demand patterns. Manufacturing and logistics stand out as the most significant contributors to this growth, reflecting strategic moves rather than organic market improvements.

These supply chain adjustments also come with some caveats. For instance, input costs remain volatile, and labor shortages continue to challenge expansion efforts. The report highlights that while output and new orders show strength, underlying pressures persist, including rising transportation expenses and…