Manufacturing PMI remains robust but supply chain issues persist
New York (Oct 1) Manufacturing numbers from around the world are still looking pretty solid at the moment. In Asia, India, Japan, and Australia all printed higher than last month's numbers showing that the bounceback from the pandemic is still gathering pace. Especially in these nations as in some cases, lockdowns have been imposed again. Australia and Japan keep coming in and out of lockdown so for the September manufacturing PMI to improve is a great result.
Looking closer to home, the European nations have been out of lockdown for a while so the markets are more mature. The main issue here is supply. Not getting enough material and staff shortages are really holding back manufacturing from hitting that higher gear. The demand still seems to be out there but there is just not enough productivity and raw materials to service that demand.
The U.K. Markit report noted " Production schedules were disrupted by a combination of input shortages, longer supplier lead times and capacity constraints (including difficulties with staff shortages and hiring required skills). Average vendor lead times increased to one of the greatest extents in the survey history, amid reports of delays to air, land and sea freight, staff shortages at vendors, COVID-19 and Brexit disruptions, a lack of delivery drivers and port delays"
In the EU it was much of the same as acute inflationary pressures persist as supplier delivery times continue to lengthen considerably. Chris Williamson Chief Business Economist at IHS said “While Eurozone manufacturing expanded at a robust pace in September, growth has weakened markedly as producers report a growing toll from supply chain headwinds." Adding “Supply issues continue to wreak havoc across large swathes of European manufacturing, with delays and shortages being reported at rates not witnessed in almost a quarter of a century"
Australian Manufacturing PMI 56.8 vs prev 52.0
Japanese Manufacturing PMI (Sep) 51.5 vs prev 51.2
Indian Nikkei Markit Manufacturing PMI (Sep) 53.7 vs exp 51.8 prev 52.3
German Manufacturing PMI (Sep) 58.4 vs exp 58.5 prev 58.5
Eurozone Manufacturing PMI (Sep) 58.6 vs exp 58.7 prev 58.7
U.K. Manufacturing PMI (Sep) 57.1 vs exp 56.3 prev 56.3
Eurozone CPI (YoY) (Sep) 3.4% vs exp 3.3% prev 3.0%
Reuters
