Latest data released by Markit - 23 April 2021
- Prior 49.6
- Manufacturing PMI 63.3 vs 62.0 expected
- Prior 62.5
- Composite PMI 53.7 vs 52.9 expected
- Prior 53.2
Some modest beats there, with the headline reading coming in at a eight-month high and the composite reading at a nine-month high. Of note, the manufacturing index and output sub-index are at record highs, since the series began in June 1997.
This just reaffirms a solid expansion in manufacturing activity with services also seen picking up marginally, although lagging much behind factory activity - which is led by Germany. Markit notes that:
"In a month during which virus containment measures were tightened in the face of further waves of infections, the eurozone economy showed encouraging strength.
"Although the service sector continued to be hard hit by lockdown measures, it has returned to growth as companies adjust to life with the virus and prepare for better times ahead.
"The manufacturing sector is meanwhile booming. Pent-up spending, restocking, investment in new machinery and growing optimism about the outlook have all helped fuel a further record surge in both output and new orders.
"The steep rise in demand for raw materials is continuing to lead to unprecedented supply chain delays, which are in turn driving up firms' costs at the fastest rate for a decade. Consumer price inflation may well rise sharply in coming months as a result, though the extent of the rise will be dependent on the strength of demand and the supply situation, both of which remain highly uncertain at the moment."