Latest data released by Markit/BME - 1 July 2021
German factory output remains solid despite supply bottlenecks, which seems to be a consistent theme across the region so far with today's readings. Markit notes that:
"June's PMI survey pointed to an all-round better performance from the German manufacturing sector. Output growth has regained some momentum after back-to-back slowdowns in April and May, the pace of factory job creation has continued to pick up speed, and goods producers' expectations have ticked up to a new record high.
"It was also encouraging to see the survey's input cost index nudge lower from a record high in May, and we eagerly await July's survey for any further signs that cost inflation in the manufacturing sector may have peaked. It is notable, however, that factory gate charges continued to accelerate higher, supported by still-rising demand for goods, as firms continue to seek to pass higher costs on to customers.
"Seeing some easing in the rate at which suppliers' delivery times are deteriorating is also welcome news, and in part reflects the recent expansion of capacity which is helping bring supply and demand into better balance and should help ease supply-chain bottlenecks. However, demand-supply imbalances are still widespread, and it will take time for them to be fully resolved. What's more, renewed virus waves in Asia could lead to some further disruptions of global supply chains in coming months, which could in turn put further pressure on prices."