Eurozone manufacturing growth remained relatively strong in August, but supply chain issues caused by the COVID-19 drove up prices and disrupted the supply of raw materials.
- The easing of restrictions put up in place to stop the coronavirus from spreading has increased demand, but many firms have reported logistical challenges, product shortages, and a labor crunch.
- The IHS Markit manufacturing PMI dropped to 61.4 in August from July’s 62.8, below an initial 61.5 “flash” estimate.
- An index measuring output, which links into a composite PMI and is seen as an excellent guide to economic health, dropped from July’s 61.1 to 59.0. Anything above 50 reveals growth.
- Chris Williamson, a chief business economist at IHS Markit, stated that eurozone manufacturers posted another month of bullish production in August, continuing the growth momentum into its 14th consecutive month.
A continuing shortage of materials and a lack of transport availability implied sellers of the goods factories needed were again able to ramp up their charges. The input prices index thus remained high at 87.0.
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Source: IHS Markit.