Latest data released by Markit - 2 August 2021
The preliminary report can be found here. Little change to the initial estimate as French manufacturing activity remains robust despite supply chain disruptions weighing. It is pretty much a similar theme across Europe last month. Markit notes that:
"Despite some strong supply-side challenges for goods producers, the France Manufacturing PMI survey showed strong growth in output during July. France has now enjoyed an unchecked period of production growth that began in February, but the survey raises a number of things to remain wary over.
"While strong demand is keeping order books healthy, building up backlogs of work and encouraging recruitment, firms are currently dealing with rapidly deteriorating supplier performance and intense input price inflation. Anecdotal evidence tells us that firms are expecting these issues to persist and are taking precautions such as safety stock building. Furthermore, the higher prices firms are paying to secure inputs is being passed on to output charges, which rose at a record rate in July.
"Firms don't seem to have such a problem paying more for their inputs because demand is so strong and they can pass this through to their clients. These are the perfect conditions for rising consumer price inflation and could soon make uncomfortable viewing for policymakers."
