Latest data released by Markit - 5 October 2021
- Composite PMI 56.2 vs 56.1 prelim
The preliminary report can be found here. Mild revisions but the final readings just serve to reaffirm some cooling in demand pressures while supply-side constraints continue to weigh on euro area business activity towards the end of Q3. A quick snapshot:
Markit notes that:
"The current economic situation in the eurozone is an unwelcome mix of rising price pressures but slower growth. Both are linked to supply shortages, especially in manufacturing, which has seen a steeper fall in output growth than services.
"With supply shortages likely to continue to subdue manufacturing well into 2022, the economy has therefore become increasingly dependent on the service sector to sustain a solid recovery path. However, the service sector is also reporting a marked cooling of demand growth which can be less easily explained by shortages, and is in part linked to customers being deterred by concerns over the persistence of the pandemic and by higher prices, as well as some moderation of spending after the initial reopening of the economy.
"Although for now the overall rate of expansion remains relatively solid by historical standards, the economy enters the final quarter of the year on a slowing growth trajectory. A drop in business confidence to the lowest since February adds further downside risks to the outlook."
