The euro area manufacturing logged another strong growth in August but the pace of momentum waned as supply issues weighed on production, final data from IHS Markit showed on Wednesday.
The final manufacturing Purchasing Managers’ Index fell to a six-month low of 61.4 in August from 62.8 in July. The flash reading was 61.5.
This marked a second successive month in which growth has slowed in the sector since June’s survey record expansion.
Goods production across the eurozone continued to expand in August but the pace of growth was the weakest in six months. At the same time, total new orders increased for a fourteenth straight month in August.
To boost output capabilities, manufacturers added to their workforce numbers in August.
On the price front, the survey showed that price pressures remained stubbornly elevated midway through the third quarter.
Input costs increased substantially further amid ongoing supply chain issues and strong input demand. Output charges also remained historically high but eased for the first time since January.
Business sentiment was strong, but eased for the second consecutive month to reach its lowest since November 2020.
Among big-four member countries, softer expansions were recorded in Germany and France. Meanwhile, Italy and Spain observed accelerated expansions in August.
Germany’s manufacturing activity grew at the slowest pace in six months in August as supply shortages constrain production. The headline IHS Markit/BME final manufacturing PMI came in at 62.6 in August, down from 65.9 in July. The latest reading was marginally below the flash 62.7.
Despite the headline index falling to its lowest level in six months, the French manufacturing sector remained in robust growth territory in August. The final factory PMI fell to 57.5 from 58.0 in the previous month. The flash reading was 57.3.
Italy’s manufacturing sector expanded for the fourteenth successive month in August and the latest growth was the third highest on record. The corresponding index rose to 60.9 from 60.3 in the prior month. The expected score was 60.1.
Likewise, Spain’s factory growth accelerated in August on strong expansion in new orders and production. The manufacturing PMI ticked up to 59.5 in August from 59.0 in July.
Source: Read Full Article