December 7, 2022

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Eurozone July flash services PMI 60.4 vs 59.5 expected

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Latest data released by Markit – 23 July 2021

  • Prior 58.3
  • Manufacturing PMI 62.6 vs 62.5 expected
  • Prior 63.4
  • Composite PMI 60.6 vs 60.0 expected
  • Prior 59.5

A solid bump in business activity with the strongest rise in over 15 years observed in the services sector. Supply chain disruptions dampened manufacturing output but overall conditions are still relatively robust to start Q3.

Prices for goods and services continue to run at a record pace, reaffirming higher cost inflation pressures. Meanwhile, backlog of work rose at a joint-survey record amid capacity constraints. Markit notes that:

“The eurozone is enjoying a summer growth spurt
as the loosening of virus-fighting restrictions in July
has propelled growth to the fastest for 21 years.
The services sector in particular is enjoying the
freedom of loosened COVID-19 containment
measures and improved vaccination rates,
especially in relation to hospitality, travel and

“Supply chain delays remain a major concern for
manufacturing, however, constraining production
and pushing firms’ costs higher. These higher costs
have led to a near record increase in average
selling prices for goods and services, which is likely
to feed through to higher consumer prices in
coming months.

“The survey also highlights how the delta variant
poses a major risk to the outlook. Not only have
rising case numbers led to a slide in business
optimism to the lowest since February, further covid
waves around the world could lead to further global
supply chain delays and hence ever higher prices.”

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