Latest data released by Markit – 2 August 2021
- Prior 60.4
A slight drop in the headline compared to June but overall levels remain elevated with production and new orders seen up sharply once again. That said, supply chain disruptions are still an issue and that is constraining growth. Markit notes that:
“July’s data again provided a positive picture overall of
manufacturing growth, with the sector again supported
by strong demand trends and the ongoing reopening of
the economy.“However, perhaps not surprisingly, the well documented
challenges in input supply – linked to product shortages
and transportation difficulties, especially for sea freight
– are biting, with growth in production reported to have
been limited by these difficulties in July.“Moreover, cost inflation remains acute, although for
those looking for signs that these price pressures are
transitory in nature, both price indices covered by the
survey have come off June highs.“Nonetheless, cost pressures and acute product
shortages remain a genuine concern for firms. With
rising COVID-19 infections around the globe also a worry,
optimism about the future subsequently fell in July to its
lowest for six months.”