Euro Area Output Falls to Six-Month Low as Supply Constraints Weigh on Production

Source: IHS Markit

The Eurozone manufacturing reading contracted for the second straight month in August to mark its lowest level in six months, as supply constraints dragged production. EZU is up 0.92% premarket.

• The IHS Markit Eurozone Manufacturing PMI fell to 61.4 in August from 62.8 in July. The latest reading remains well above the historical average.
• Firms attributed the decline to the lack of components. Supply issues caused the deficit to surpass the 24-year record seen in July.
• Among the constituents with the lowest growth was France with 57.5, Greece with 59.3, and Spain with 59.5.
• The strongest improvement was seen in the Netherlands with 65.8, Ireland with 62.8, and Germany with 62.6.
• Total new orders climbed for the fourteenth straight month, with employment growth sustaining its trend for the seventh consecutive month.
• Price pressures remained elevated, while input costs recorded substantial increases due to supply chain constraints.
• Optimism over the next year fell for the second straight month to its lowest level since November 2020.