Latest data released by Markit – 1 February 2021
The preliminary report can be found here. Little change to the initial estimate as also noted in the French and German reports earlier. This mainly just reaffirms that factory conditions are seen holding up decently despite tighter virus restrictions in the region.
Markit notes that:
“Eurozone manufacturing output continued to
expand at a solid pace at the start of 2021, though
growth has weakened to the lowest since the
recovery began as new lockdown measures and
supply shortages pose further challenges to
producers across the region.
“Supply chain delays worsened during the month to
a degree only exceeded once – during the global
lockdowns early last year – in more than two
decades of survey history.
“At the moment, manufacturing is providing an
important support to the economy as the service
sector is hit by COVID-19 restrictions, but this
support is waning. Consumer goods producers in
particular are struggling. While future prospects
brightened, with manufacturers’ optimism striking a
three-year high in January to sound a reassuring
note of confidence at the start of the year, any
potential delays to the vaccine roll-outs will add an
additional layer of uncertainty to the outlook.
“Supply shortages have meanwhile put pricing
power in the hands of suppliers, pushing raw
material prices sharply higher. Increased shipping
costs are adding to the burden. These price
pressures should ease once more supply capacity
comes online, although there remains some
uncertainty about how much pent-up demand exists
and how sticky these higher prices may prove to