Eurozone Business Activity Slips to Five-Month Low as Costs Hit 21-Year High

Source: IHS Markit

The Eurozone business activity slowed to a five-month low in September, as supply issues and pandemic concerns weighed down output while costs rose to a 21-year high.

• The Eurozone PMI Composite Output Index slipped to 56.1 from 59.0 in August. This is the lowest since April but remains above the pre-pandemic trend.
• Costs surged to post a 21-year high growth, with demand outpacing supply in both manufacturing and services.
• The Services PMI slipped to 56.3 from 59.0 in August, its weakest since May, as firms recorded the smallest production growth in eight months.
• Manufacturing output dropped to an eight-month low of 55.6, primarily due to supply chain issues that hit several providers. The pandemic also hit demand.
• Manufacturing PMI stood at 58.7, the lowest in seven months. New orders grew at the slowest since April, and demand growth cooled versus prior months.
• Order backlogs posted a steep climb, while delivery times recorded longer periods in September to post a pandemic high.