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Eurozone Manufacturing Growth Slowdown Continued in September, PMI Shows

By Maria Martinez

While eurozone manufacturing expanded at a robust pace in September, growth has weakened markedly as producers report a growing toll from supply-chain problems, IHS Markit said Friday.

The eurozone manufacturing purchasing managers index fell to 58.6 in September from 61.4 in August, posting the largest drop since April 2020, according to IHS Markit.

“Supply issues continue to wreak havoc across large swathes of European manufacturing, with delays and shortages being reported at rates not witnessed in almost a quarter of a century and showing no signs of any imminent improvement,” Chris Williamson, chief business economist at IHS Markit said.

Output, new orders and employment posted notable slowdowns when compared with August.

Supply constraints were a key hindrance to production schedules during September, while softer demand conditions were another contributing factor, IHS Markit said.

Acute inflationary pressures persist. Growing supply and transport issues drove prices sharply higher in September, IHS Markit said.

“With costs rising and factories struggling to produce enough goods to meet customer demand, the average price of goods leaving the factory gate rose at an increased rate in September, accelerating to almost match the record price jumps seen earlier ithe summer,” Mr. Williamson said.

Write to Maria Martinez at [email protected]

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