Rolling coverage of the latest economic and financial news
- Latest: UK private sector growth hit six-month low in August
- Firms report big problems with staff and material shortages
Earlier:
- Eurozone private sector growth near 15-year high, but supply chain problems remain
- PMI surveys show August slowdown in Japan and Australia
- In Japan, private sector output falls at sharper pace this month
- Australia’s growth also hit by Covid-19 lockdowns
There were “widespread reports” from UK manufacturers that escalating shipping costs and shortages of raw materials led to intense price pressures this month, the PMI report shows.
While many service sector companies reported that staff shortages had constrained the recovery, as the reopening of the economy led to a jump in demand, pulling services growth down to a six-month low.
Firms in the residential property sector often cited the end of the full stamp duty holiday as a factor leading to lower business activity.
These chart shows how UK company growth slowed rather rapidly this month… as delivery times for supplies slumped to levels only seen in the first lockdown in April 2020.