Eurozone PMI Manufacturing was finalized at 62.9 in April, up from March’s 62.5, highest since record began in 1997. Markit noted considerable increases in out and new orders. But supply delivery times lengthened at unsurpassed rate, helping to driver rapid price increases.
Looking at some countries, the Netherlands (67.2), Austria (64.7) and Italy (60.7) were at record highs. Readings for Germany (66.2), France (58.9) and Spain (57.7) were also strong.
Chris Williamson, Chief Business Economist at IHS Markit said: “The consequence of demand running ahead of supply is higher prices being charged by manufacturers, which are now also rising at the fastest rate ever recorded by the survey. “The big uncertainty is how long these upward price pressures will persist for, and the extent to which these higher charges for goods and services will feed-though to consumers.”
“Encouragement comes from the sharp increase in employment and investment in machinery and equipment signalled by the survey, which suggests firms are scaling up capacity to meet resurgent demand. This should help bring supply and demand more into line, taking some pressure off prices. But this will inevitably take time.”
