Latest data released by Markit – 1 September 2021
Output and new orders are seen lower but are still registering modest expansions, keeping overall activity at elevated levels despite major issues posed by supply chain disruptions – likely to be more evident in the months ahead. Markit notes that:
“Eurozone manufacturers reported another month of
buoyant production in August, continuing the growth
spurt into its fourteenth successive month. The
overriding issue was again a lack of components,
however, with suppliers either unable to produce
enough parts or are facing a lack of shipping capacity
to meet logistics demand.“These supply issues were the primary cause of a
shortfall of manufacturing production relative to
orders of a magnitude not previously recorded by the
survey, surpassing the 24-year record deficit seen in
July.“Factory selling prices consequently rose steeply
once again, albeit with some of the upward pressure
alleviated by a slight cooling of input cost inflation,
albeit with still-high materials prices adding to
manufacturers’ problems.“Employment growth meanwhile eased only
modestly from July’s all-time high as producers
remained focused on boosting operating capacity.
However, a dip in future sentiment in August – linked
to the peaking of demand, persistent supply chain
issues and the spread of Delta variant – add to signs
that both output and employment growth has
peaked.”