Latest data released by Markit - 22 October 2021
- Prior 56.4
- Manufacturing PMI 58.5 vs 57.0 expected
- Prior 58.6
- Composite PMI 54.3 vs 55.2 expected
- Prior 56.2
Softer readings across the board, with overall business activity growth weakening to its slowest in six months. The details reveal that supply bottlenecks are a key issue, weighing on manufacturing output as it slumps to its weakest in 16 months.
Adding to that is a survey-record increase in prices, as firms reportedly sought to pass on the rise in costs on to customers. Markit notes that:
"A sharp slowdown in October means the eurozone starts the fourth quarter with the weakest growth momentum since April. A manufacturing sector beset with supply chain delays saw production growth falter to the lowest since the first lockdowns of last year. The services sector has meanwhile seen some of the summer rebound fade just as resurgent virus case numbers bring renewed concerns, notably in Germany. These worries have once again hit the consumer-facing travel, tourism and recreation sectors in particular.
"The ongoing pandemic means supply chain delays remain a major concern, constraining production and driving prices ever higher, both in manufacturing and in the services sector. Average selling prices for goods and services are rising at a rate unprecedented in over two decades, which will inevitably feed through to higher consumer prices in the coming months.
"While the overall rate of economic growth remains above the long-run average for now, risks seem tilted to the downside for the near-term as the pandemic continues to disrupt economies and push prices higher. After strong second and third quarter expansions, GDP growth is looking much weaker by comparison in the fourth quarter."
