Key findings from the Markit report:
- Stronger rise in output amid renewed upturn in sales
- Input cost inflation eases to 19-month low
- Business confidence weakens amid pandemic and supply chain worries
The commentary in the report is long and detailed, in summary though:
- Supply was strong and demand rebounded... easing of supply constraints, output expanded for the second month in a row and at a faster pace.
- Overseas demand remained sluggish because of the pandemic’s impact in foreign countries and rising logistics costs due to a shortage of containers.
- Employment pressure intensified ... firms were still cautious about hiring.
- The subindex of employment stayed in negative territory for the fifth consecutive month in December and hit the lowest point since February.
- Inflationary pressure eased as costs rose at a slower clip. The gauge for input costs remained in expansionary territory but was lower than the previous month.
more to come