Global Manufacturing – IHS Article
IHS Markit has published an insightful article on the state of global manufacturing, based on the JPMorgan Global Manufacturing PMI for September.
It confirms global manufacturing prices continue to spike higher amid supply constraints, but also identifies that demand pressures shows signs of easing.
Read article here
Shortages inhibit UK Construction
The September IHS Markit / CIPS UK Construction PMI® slipped from 55.2 last month to 52.6, signalling only moderate expansion in total construction output and the weakest speed of recovery for eight months. Respondents identified a combination of supply chain issues and softer demand behind the slowdown.
All construction categories lost growth momentum in September. House building decelerated with the latest expansion (52.8) the weakest since June 2020. The commercial segment fared slightly better with a reading of 53.6, as order books were boosted by the reopening of the wider UK economy. Civil engineering recorded the sharpest slowdown, from 54.8 in August to 51.0.
There was a moderate increase in new work in September, but the weakest since the beginning of the year, with the slowing linked to client hesitancy and less favourable demand conditions.
Employment rose strongly across the sector, although the slowest since April, partially reflecting long wait times to fill vacancies. A lack of sub-contractor availability further squeezed labour supply and increased cost pressures.
prices continued to increase rapidly in September, although the inflation rate
eased from June’s all-time peak. 78% of respondents reported increased costs,
mostly linked to supply shortages and transport surcharges.
Construction outlook was weaker than August but remained ‘highly upbeat’, with only 8% of respondents expecting a decline in activity.