Latest data released by Markit/BME - 5 July 2021
- Composite PMI 60.1 vs 60.4 prelim
A slight revision lower but it doesn't take much of the shine off the report with business activity being at the highest since March 2011. As the economy reopens, the services sector is continuing to gather pace and recover more strongly.
That said, record price pressures are observed and has been a consistent theme across all the reports seen across the euro area so far today. Markit notes that:
"The further easing of COVID restrictions in June saw the recovery in service sector business activity gain considerable momentum. Customer-facing services business enjoyed a revival in activity, but there were positive trends across the board as rising confidence among businesses and consumers alike helped spur a general pick-up in demand.
"The surge in services activity in June was accompanied by a stronger expansion in manufacturing production, which puts the economy on course for a solid growth outturn in the second quarter and potentially an even better performance in the third quarter.
"However, alongside a strong rebound in demand we're seeing costs continuing to soar, with the two factors combining to drive a rise in prices charged by services firms that's unprecedented in more than two decades of data collection."
