Eurozone PMI Manufacturing was finalized at 58.3 in October, slightly down from September’s 58.6. But that’s still the lowest level since February. Readings of individual states remained generally strong: Netherlands at 62.5, Ireland at 62.1, Italy at 61.1, Austria at 60.0, Greece at 58.9, Germany at 57.8. Spain at 57.4, France at 53.6.
Chris Williamson, Chief Business Economist at IHS Markit said:
“Eurozone manufacturers reported a worsening of the supply chain situation in October, which curbed production growth sharply during the month. Average delivery times for raw materials lengthened at a rate exceeded only twice in almost a quarter of a century of survey data as companies reported demand once again running ahead of supply for a wide variety of inputs and components. Production constraints at suppliers were reported alongside a growing list of logistical issues. These include a lack of shipping containers and inadequate freight capacity, port congestion, driver shortages and broader transport delays linked mainly to the pandemic.
“These shortages have led to the weakest rise in factory output since the recovery began in July of last year, and also pushed inflationary pressures to new survey highs, raising further questions about just how transitory the recent spike in inflation will be.
“Business confidence also lost some ground to hit a one-year low in October, as increasing numbers of producers grew concerned about the supply situation and the impact of rising costs and prices, adding to the indications that manufacturers face some challenging months ahead.”
