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(Kitco News) - Both U.K. and EU manufacturing PMI missed expectations but importantly stayed in expansionary territory. Although the sectors are still growing the issue still remains that supply bottlenecks are suppressing future progress. In the U.K., the rate of job creation remained elevated, however, driven by strong hiring at service providers. The report noted, employment growth slowed sharply at manufacturers amid shortages of available staff and moderating demand. Despite ongoing rapid job creation and a slowdown in new order growth, backlogs of work continued to rise across the private sector, extending the current sequence of accumulation to seven months.
In Europe, the impact of the Delta variant is still having an effect on demand and supply chains, contributing to a further moderation in the rate of job creation from July’s 21-year peak. Firms’ costs meanwhile rose at the fastest rate in 21 years as demand again outstripped supply, with price rises increasingly feeding through from manufacturing to services.
Chris Williamson, Chief Business Economist at IHS Markit said “For now, the overall rate of expansion remains solid, despite slowing, but growth looks likely to weaken further in coming months if the price and supply headwinds show no signs of abating"
Later we look forward to U.S. manufacturing PMI data for September and it is expected to hit 61.5 with the previous number at 61.1.
UK Markit Manufacturing PMI Sep P: 56.3 (est 59.0; prev 60.3)
UK Markit/CIPS Services PMI Sep P: 54.6 (est 55.0; prev 55.0)
UK Markit/CIPS Composite PMI Sep P: 54.1 (est 54.6; prev 54.8)
Eurozone Markit Manufacturing PMI Sep P: 58.7 (est 60.3; prev 61.4)
Eurozone Markit Services PMI Sep P: 56.3 (est 58.5; prev 59.0)
Eurozone Markit Composite PMI Sep P: 56.1 (est 58.5; prev 59.0)