Business activity in the
The latest IHS Markit Composite Output Index for the
The reading was the highest since
Read more:
Higher manufacturing output contributed to the strong levels of business activity, driven by export demand rising as the global economy reopens. This was supported by the Eurozone’s services sector reporting its fastest pace of growth since 2007.
“Business is booming in the eurozone’s service sector, with output growing at a rate unsurpassed
over the past 15 years. Added to the impressive growth seen in the manufacturing sector, the PMI surveys suggest the region’s economy is firing on all cylinders as it heads into the summer.”
Firms were put under intense pressure to cope with surging rates of new business and to clear swelling backlogs of work in June.
Businesses responded to robust demand by scaling staffing levels for the fifth successive month at the fastest rate of expansion since the start of 2018.
Fears that inflation may prove much sticker than experts have forecast are starting to gather momentum. Operating expenses rose in June at a historically elevated rate, with inflation hitting its strongest level for over two decades.
“Firms are increasingly struggling to meet surging demand, however, in part due to labour supply shortages, meaning greater pricing power and underscoring how the recent rise in inflationary pressures is by no means confined to the manufacturing sector” Williamson added.
Service sector companies are hiking their prices at the steepest pace for over 20 years as costs spike higher, accompanying a similar jump in manufacturing prices to signal a broad-based increase in inflationary pressures.”
Read more: Bailey attempts to quash inflation fears
The post PMI:
© City AM, source