Eurozone manufacturing activity continued to ease in September as supply-side constraints dampened production, survey results from IHS Markit showed on Friday.
The final manufacturing Purchasing Managers’ Index fell to 58.6 in September from 61.4 in August. This was the lowest since February and below the ‘flash’ print of 58.7. The headline index logged its largest fall since April 2020.
New orders and production signaled considerable moderations in growth. New export orders rose at the slowest pace since January.
Supply constraints were a key hindrance to production schedules. Softer demand conditions were also another contributing factor. Supply delivery times continued to lengthen in September.
On the price front, the survey revealed that inflationary pressures remained acute in September. To protect profit margins, manufacturers lifted their output prices, and to a quicker extent than seen in August.
Manufacturing jobs growth slowed to a six-month low in September due to lower labor requirements amid the widespread component shortages.
Finally, business confidence fractionally ticked higher. However, the degree of optimism held close to August’s nine-month low.
Among big-four economies, Germany registered the most notable slowdown compared with August due to supply bottlenecks. The headline IHS Markit/BME final manufacturing PMI came in at an eight-month low of 58.4 in September, down from 62.6 in August and the flash score of 58.5.
France manufacturing activity growth eased in September as shipping delays and surging prices weighed on production and new orders. The final factory PMI fell to 55.0 from 57.5 in August. The flash reading was 55.2.
Italy’s manufacturing upturn remained strong in September. Nonetheless, the pace of expansion was the slowest since February. The factory PMI slid to 59.7 from 60.9 in August.
Spain’s manufacturing sector continued to grow in September but at a slower pace. The factory PMI dropped to 58.1 from 59.5 in the prior month. The score was forecast to fall to 58.2.
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