Last Friday, IHS Markit released the preliminary PMI data for four major economies. Below are the key points from the individual reports.
United States
Europe
United Kingdom
Australia
United States
- Services sector slowed down to a 5-month low pace due to labour shortages.
- Manufacturing sector expanded at record high pace.
- Prices of goods and services remained steep as firms pass on the high costs to consumers.
- Total employment growth eased to 4-month low.
- Business confidence declined to 7-month low mainly due to rising inflation, labour and material shortages, as well as rising concerns over the pandemic.
Europe
- Services sector expanded at the fastest pace in 15 years due to reopening of economy from the lifting of COVID restrictions.
- Manufacturing sector expanded at a slightly reduced pace due to supply constraints, which led to an increase in backlogs of work.
- Employment continues to rise sharply.
- Prices for goods and services rose as demand surpassed supply.
- Business confidence declined to 5-month low as concerns over the COVID Delta variant grow.
United Kingdom
- Business activities in the UK slowed down considerably due to shortages of workers and raw materials.
- Backlogs declined due to a slowdown in business activities.
- Business and consumer confidence fell due to the pandemic and Brexit-related difficulties with export sales.
- Employment growth eased to the slowest level since March.
Australia
- Services sector slipped into contraction for the first time in 11 months.
- Renewed COVID restrictions caused by the spread of Delta variant affected demand and output in Australia.
- Decline in demand in the services sector led to a decline in work outstanding.
- Manufacturers continue to report shortages of supply, leading to an increase in work outstanding.
- Employment in both the services and manufacturing sectors continue to grow.