![](https://theceopublication.com/wp-content/uploads/2024/09/Foster-USA-Wins-Winston-Salem-Council-Approval-for-Incentives.png)
September 24, 2021: -On Thursday, Eurozone business activity grew at its weakest pace in five months in September as curbs to limit the Delta variant of coronavirus hit demand, and supply-chain constraints pushing input costs to a more than two-decade high, a survey showed.
Despite the infection rates slowing significantly over the past month, most remaining restrictions are to be lifted anytime soon in significant economies, that include Germany and France, on concerns on how the pandemic might develop in the months ahead.
IHS Markit’s Flash Composite Purchasing Managers’ Index, a good gauge of the economic health, that to a five-month low of 56.1 in September from 59.0 in August.
However, it stayed above the 50 levels separating growth from contraction for the seventh consecutive month, and it was below a Reuters poll estimate of 58.5.
“September’s flash PMI highlights an unwelcome combination of sharply slower economic growth and steeply increasing prices,” said Chris Williamson, a chief business economist at IHS Markit, in a statement.
“Growth looks likely to weaken further in future months if the price and supply headwinds show no signs of abating, especially if accompanied by any rise in virus cases as we head into the autumn.”
A sub-index tracking input costs reached 70.5, its highest in more than two decades. That suggests supply distortions, one of the primary drivers of prices throughout the globe over past months, are far from resolved, and the trend of higher inflation is here to stay at least for a few months to come.
According to the latest European Commission data, the optimism about future output fell to an eight-month low. That contrasts with improving consumer confidence.
A PMI covering the bloc’s dominant service industry tumbled to 56.3 in September from 59.0 in August, its lowest since May and significantly below the Reuters poll forecast of 58.5.
New business – a measure that tracks demand in the sector – expanded at its slowest pace in five months.
Also, the manufacturing PMI is refusing to 58.7 from 61.4 in August, its lowest from February, and below the Reuters poll forecast of 60.3. An index that measures output that feeds into the composite PMI fell to 55.6 from 59.0, the weakest in eight months.
Weakening demand led firms to hire at the slowest pace in six months. However, backlogs of work expanded at a robust pace again, signaling worsening supply constraints.
© THE CEO PUBLICATION 2021 | All rights reserved. Terms and condition | Privacy and Policy