Eurozone PMI Manufacturing dropped from 61.5 to 58.7 in September, below expectation of 60.4, a 7-month low. PMI Services dropped from 59.0 to 56.3, below expectation of 58.4, a 4-month low. PMI Composite dropped from 59.0 to 56.1, a 5-month low.
Chris Williamson, Chief Business Economist at IHS Markit said:
“September’s flash PMI highlights an unwelcome combination of sharply slower economic growth and steeply rising prices.
“On one hand, some cooling of growth from the two-decade highs seen earlier in the summer was to be expected. On the other hand, firms have become increasingly frustrated by supply delays, shortages and ever-higher prices for inputs. Businesses, most notably in manufacturing but also now in the service sector, are being constrained as a result, often losing sales and customers.
“Concerns over high prices, stressed supply chains and the resilience of demand in the ongoing pandemic environment has consequently eroded business confidence, with expectations for the year ahead now down to the lowest since January.
“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, especially if accompanied by any rise in virus cases as we head into the autumn.”