Euro area manufacturing PMI falls to 58.3 in October as output and new order growth lose further momentum
The Eurozone Purchasing Managers’ Index (PMI) for the manufacturing sector dipped to an eight-month low in October, as output and new order growth lose further momentum due to supply chain disruptions.
The PMI fell to 58.3 in October, down from 58.6 in September, signaling the slowest improvement in manufacturing sector conditions since February, the London-based global data provider IHS Markit stated on Tuesday.
Supply-side issues interrupted production schedules and dented order books, the report said and added that the input delivery times lengthened to one of the greatest extents on record, pushing input cost and output price inflation to new highs.
The manufacturing sectors of the Netherlands, Ireland, and Italy posted the fastest growth in the month.
The remaining monitored countries registered slowdowns,the IHS Markit report showed, while Germany and France’s PMI slumped to a nine-month low in October.
Chris Williamson, Chief Business Economist at IHS Markit, said the pandemic induced production constraints at suppliers – a lack of shipping containers and inadequate freight capacity, port congestion, driver shortages, and broader transportation delays – were reported, besides logistical issues.
“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,” Williamson said.