July PMI For 4 Major Economies (26 July 2021)

Last Friday, IHS Markit released the preliminary PMI data for four major economies. Below are the key points from the individual reports.

United States

• Services sector slowed down to a 5-month low pace due to labour shortages.
  
• Manufacturing sector expanded at record high pace.
  
• Prices of goods and services remained steep as firms pass on the high costs to consumers.
  
• Total employment growth eased to 4-month low.
  
• Business confidence declined to 7-month low mainly due to rising inflation, labour and material shortages, as well as rising concerns over the pandemic.
  

Europe

• Services sector expanded at the fastest pace in 15 years due to reopening of economy from the lifting of COVID restrictions.
  
• Manufacturing sector expanded at a slightly reduced pace due to supply constraints, which led to an increase in backlogs of work.
  
• Employment continues to rise sharply.
  
• Prices for goods and services rose as demand surpassed supply.
  
• Business confidence declined to 5-month low as concerns over the COVID Delta variant grow.
  

United Kingdom

• Business activities in the UK slowed down considerably due to shortages of workers and raw materials.
  
• Backlogs declined due to a slowdown in business activities.
  
• Business and consumer confidence fell due to the pandemic and Brexit-related difficulties with export sales.
  
• Employment growth eased to the slowest level since March.
  

Australia

• Services sector slipped into contraction for the first time in 11 months.
  
• Renewed COVID restrictions caused by the spread of Delta variant affected demand and output in Australia.
  
• Decline in demand in the services sector led to a decline in work outstanding.
  
• Manufacturers continue to report shortages of supply, leading to an increase in work outstanding.
  
• Employment in both the services and manufacturing sectors continue to grow.