Latest data released by Markit - 2 November 2021
The preliminary report can be found here. Little change to the initial estimate as the final report reaffirms the sharpest fall in production since May last year as supply issues intensify, with output levels sliding as firms struggle to secure necessary materials.
Other key things to note from the report is that lead times lengthened at a near-record pace and cost inflation surged to its highest in a decade. Markit notes that:
"The supply chain issues we've been documenting for some months have been somewhat restrained to the supply-side of the economy, at least until now.
"Rapid rates of inflation have ensued, but production has still continued to grow and order books fill up. In October, French manufacturers recorded lower output volumes for the first time since January, while new business intakes fell for the first time in 2021.
"Because firms cannot secure the inputs needed to make their products, orders are now also falling as clients are facing lengthy delays on orders or are unable to get components and other items needed to turn semifinished goods into finished goods.
"It's difficult to imagine the situation improving any time soon. Prudent inventory management will be crucial for businesses hoping to keep production lines going."
