He added, "Business Survey Committee respondents have indicated that they continue to struggle with inflation, supply chain disruptions, capacity constraints, logistical challenges and shortages of labor and materials." He added, "The biggest concern is that the resulting wave of absenteeism will cause a significantly (albeit hopefully short-lived) hit to labor supply, reducing output in the manufacturing and services sectors alike." The ISM released a separate report on Tuesday showing activity in the U.S. manufacturing sector grew at a slower rate in the month of December.