US: Markit Manufacturing PMI retreats to 61.2 in August vs. 62.8 expected; U.S. Manufacturing Shipments Set to Rebound in 2021; U.K. Construction and Manufacturing Push Up Wage Inflation; Supply Chain Issues are Hindering UK Manufacturing Recovery.
US: Markit Manufacturing PMI Retreats to 61.2 in August vs. 62.8 Expected
The economic activity in the US manufacturing sector continued to expand in August, albeit at a slower pace than it did in July, with IHS Markit’s Manufacturing PMI declining to 61.2 (preliminary) from 63.4. This reading came in worse than the market expectation of 62.8.
Commenting on the data, “not only have supply chain delays hit a new survey record high, but the August survey saw increasing frustrations in relation to hiring,” said Chris Williamson, chief business economist at IHS Markit.”
Source: FX Street.
U.S. Manufacturing Shipments Set to Rebound in 2021
U.S. manufacturers’ shipments in nominal terms are forecast to advance 3.8% per year through 2025 from a depressed 2020 base.
Manufacturing shipments in nominal terms are expected to rise 6% in 2021 as the economy recovers, partially reversing a decline of 6.7% in 2020 due to the COVID-19 pandemic. Efforts to delay community transmission caused a sharp contraction in economic activity, leading to significant changes or reductions in most manufacturing sectors.
Source: Autobody News.
U.K. Construction and Manufacturing Push Up Wage Inflation
Britain’s construction, manufacturing and food preparation industries are pushing wages higher across the economy due to a shortage of workers to fill available jobs.
“We’re seeing some pretty staggering numbers,” said Pawel Adrjan, head of EMEA research at Indeed, noting that the six industries experiencing high wage growth made up 30% of all job postings on the site. “Wages and salaries have gone up significantly faster in those sectors where we are seeing outsized demand for workers.”
Supply Chain Issues are Hindering UK Manufacturing Recovery
The Manufacturing Barometer, which is run by SWMAS (South West Manufacturing Advisory Service) and supported by the Manufacturing Growth Programme (MGP), reveals that 96% of respondents are struggling with price changes within their supply chain.
Firms believe that rising costs are being driven by lack of raw materials availability (94%), rising transport costs (82%), and reduced capacity in the market to meet demand (63%).
Source: PES Media.