Source: IHS Markit
American private-sector output fell to an eight-month low in August, dragged by supply issues and the spread of the COVID-19 delta variant during the period.
- The IHS Markit Flash Composite PMI Output Index fell for the third straight month to 55.4 in August from 59.9 in July. This is the slowest seen so far this year.
- The Services Business Activity Index dropped to an eight-month low of 55.2, from 59.9 in July. New business orders grew at the slowest pace since December 2020.
- The Manufacturing Output PMI fell to a four-month low of 61.2, while the Manufacturing Output Index slipped to a five-month low of 56.3.
- Firms recorded “severe” supply chain disruptions, with input price inflation hitting the second-fastest on record since October 2009.
- Backlogs climbed due to supply and staff shortages, along with the spread of the delta variant.
- Outlook for output for the coming year remained upbeat, with confidence reporting growth from the levels recorded in July.
- IHS Chief Business Economic Chris Williamson expects prices to continue their uptrend given the pressures from materials and labor shortages.